Stanley v. LemireStanley v. Lemire
¶1 James and Ida Stanley (“the Stanleys”) filed suit against Lillian Lemire (“Lemire”) in the Cascade County Justice Court, seeking possession of the real property on which Lemire was residing plus unpaid “rent,” costs of the suit, and attorney fees. Following a jury trial, the Justice Court entered judgment in favor of the Stanleys except on their claim for unpaid “rent,” and this judgment was affirmed by the District Court for the Eighth Judicial District, Cascade County, on all issues except the award of fees and costs. Lemire now appeals to this Court.
¶2 The issues on appeal are as follows:
¶3 1. Does this Court have jurisdiction over Lemire’s appeal?
¶4 2. Did the District Court err in its determination that the Justice Court retained subject matter jurisdiction over the Stanleys’ action against Lemire after she asserted a claim of title to the real property in dispute?
¶5 3. Did the District Court err in affirming the Justice Court’s determination that the Stanleys were entitled to an award of attorney fees?
FACTUAL AND PROCEDURAL BACKGROUND
I. The “Rental Contract”
¶6 This case arises out of a dispute involving real property located at 1701 13th Avenue South in Great Falls, Montana (“the subject property”). In 1997, Marlene Sorum sold this property to the Stanleys, allegedly with the understanding that Lemire (Ms. Sorum’s mother) would be able to live there as long as she wished or for life. However, this understanding was not recorded as part of a deed or contract for
¶7 On February 2, 1997, Lemire and the Stanleys entered into a written agreement titled “RENTAL CONTRACT.” The agreement provided, in its entirety, as follows:
The contract entered into below is between Joe and Ida Stanley here after called agent and Lillian Lemire here after called tenant.
In consideration of the use and occupancy of the premises as herein specified we mutually agree.
Address or property 1701-13 Th. [sic] Ave. So. Great Falls MT.
Tenant agrees to rent the subject premises for $100.00 per month payable in advance on the fifth day of each month and every month there after.
Pets will be allowed.
Tenant will be responsible for the utilities.
No more than one person may reside in this house, that person being Lillian Lemire. The tenant shall not transfer her interest in and to this agreement, nor shall the tenant assign or sublet the said premises or any part there of in her absence or otherwise permit others to occupy the premises at any time during this agreement. If tenant violates the provisions of this paragraph the agent may immediately take possession of said premises and in the event of litigation, may sue and evict any person or persons occupying said premises.
It is expressly understood and agreed that the owner of said premises, or said agent will not be liable for any damages or injury of any kind to tenant or her family, or of her or her family’s property from what ever cause arising from the occupancy of said premises by tenant and or her family.
It is also understood agent will maintain premises in a condition considered safe for the tenant to occupy.
It is also understood that the term of this agreement is for as long as Lillian Lemire wishes to reside at said premises or until her death. If Lillian wishes to terminate said agreement she is required to give a 30 day notice to vacate.
In the event Joe or Ida Stanley for whatever reason no longer act as owner or agent of this property this agreement will in its entirety be honored by the new owner or agent.
It is also understood that the tenant may continue to reside at the premises now and in the future as she has resided in the past.
Thereafter, the Stanleys each signed under the heading “Owner/agent”
II. The First Lawsuit
¶8 The parties apparently maintained an amicable relationship for the first few years. Then, in August 2001, the Stanleys began holding Lemire’s monthly checks (in other words, they did not timely present the checks for payment). Eventually, they did present the checks for payment; however, the bank did not honor any that were over six months old ($800 worth). The Stanleys then attempted to terminate the Rental Contract and regain possession of the subject property on the ground that Lemire had failed to pay rent. On December 24, 2002, they filed suit against Lemire in the Cascade County Justice Court (Cause No. J202V3186). For clarification, this is not the case presently before us on appeal. Rather, as explained below, the appeal before us is from a second lawsuit, which the Stanleys filed in the Cascade County Justice Court in 2004.
¶9 In the first lawsuit (“Suit #1”), the Justice Court ruled in favor of the Stanleys, and an appeal was taken to the District Court (Cause No. BDV-03-368) for a trial de novo.1 Notably, the District Court observed in its Amended Order that
neither of the parties have come to Court with clean hands. The Plaintiffs admit that they held the checks tendered by the Defendant in an attempt to evict her. In fact, they still want her evicted and are requesting damages. The Defendant, for her part, initially refused to re-issue the dishonored checks deeming it the Plaintiffs’ problem since she had tendered the checks as required.
¶10 That said, the court denied the Stanleys’ motion for summary judgment and granted Lemire’s motion for summary judgment, “find[ing] that a valid rental contract exists between the parties and that the Defendant performed her obligations under the contract.” Furthermore,
[t]he Plaintiffs’ actions in retaining the proffered rent checks in an attempt to evict the Defendant amounted to a breach of the contract on the part of the Plaintiffs. The Defendant shall be allowed to continue rental of the premises under the terms of the
rental contract entered into by the parties. At the same time, the Court finds that the Defendant shall pay to the Plaintiffs the amount of $800.00, plus interest at the rate of ten percent (10%) per annum from the time she was notified that the bank would not honor her checks, to cover the stale checks that were not honored by the bank.
Neither party appealed this judgment.
III. The Second Lawsuit
¶11 The Stanleys initiated their second lawsuit against Lemire (“Suit #2,” the case now before us) in the Cascade County Justice Court (Cause No. J204V0232) on January 22, 2004. The Complaint for Possession alleged that Lemire had “breached the rental agreement by withholding part of rent monies” totaling, as of that date, $40. The Stanleys sought possession of the premises, unpaid rent, costs of the suit, and attorney fees.
¶12 A “voluminous flurry of filings” (as the Justice Court characterized them) ensued. Of those, the following trace the evolution of Lemire’s characterization of her interest in the subject property from that of a lessee to that of a life tenant, which is an essential element in resolving Lemire’s claim on appeal that the Justice Court lacked jurisdiction over the Stanleys’ action.
¶13 First, on January 30, 2004, Lemire filed a motion to dismiss in which she characterized her relationship with the Stanleys as a “landlord-tenant arrangement[].” She asserted that she “has a lease of the subject premises for the rest of her natural life” (emphasis added) and that she had reduced her monthly payments by $20 per month “to reflect the reduced value of the leasehold estate” (a reference to damage to a picnic table and a storage shed on the subject property, allegedly caused by Mr. Stanley following the termination of Suit #1). She construed the Stanleys’ complaint, which cited no statutory provisions, as stating an action under the law of unlawful detainer (
The law of unlawful detainer, however, is not applicable in this case because Ms. Lemire’s lease is a residential lease government [sic] by Title 70 Chapter 24 of the Montana Code Annotated [The Montana Residential Landlord and Tenant Act of 1977], and because Ms. Lemire’s lease is for life.
¶14 A week later, Lemire filed an Answer, Counterclaims, and Demand for Jury Trial. In conformance with her motion to dismiss, she referred to the parties’ contract as a “lease agreement” and to the
¶15 The Stanleys filed a response to Lemire’s motion to dismiss on February 11, 2004. Among other things, they argued that Lemire “may be trying to mislead the court into believing that Defendant has a life estate”—a prescient interpretation of her argument, given that Lemire had not yet explicitly characterized her interest as such. The Stanleys continued: “In truth, Defendant has a written lease, which expires upon the termination of the contract. As set forth above, Montana Law allows for the termination of a rental agreement when rent is unpaid.”
¶16 Next in the progression, Lemire filed her Amended Answer and Counterclaims. As before, she referred to the subject property as having been “leased to her.” In addition, she used the terms “leasehold estate” and “leased premises” repeatedly, referred to the $100 monthly payments as “rent,” and alleged that she “has valid a [sic] rental agreement with [the Stanleys] . . . for the remainder of her natural life.”
¶17 On March 31, 2004, Lemire filed a document titled Defendant’s Combined Opposition to Plaintiff’s Motion to Set Trial Date, and Motion for Pretrial Conference. She asserted that a pretrial conference should be held to address, among other things, “jurisdictional matters related to Ms. Lemire’s counterclaims.” She continued:
A Justice of the Peace does not have jurisdiction over claims for malicious prosecution, over actions for damages from the taking, detaining, or injuring personal property in excess of $7,000.00, and over claims arising out of a contract in excess of $7,000.00.
Mont. Code Ann. § 3-10-301(1) . Ms. Lemire’s counterclaims rest, in part, on breach of contract, damages for conversion of personal property to which she claims title, and malicious prosecution. [Citation to Amended Answer.] Whether or not this Court has jurisdiction to decide on these claims has not yet been determined. [Emphases added.]
¶19 On April 30, 2004, Lemire filed a Motion to Stay, and Memorandum in Support. Noting that the Justice Court had denied her motion to dismiss, dismissed her malicious prosecution counterclaim, and rejected her “additional jurisdictional concerns,” she informed the court that she had refiled her counterclaim for malicious prosecution in the District Court (Cause No. CDV-04-401) and had requested that the District Court “equitably determin[e] her interests in the premises as a life tenant.” Accordingly, she asserted, “[t]his matter should be halted, and certified for submission to the Clerk of the District Court.” She explained as follows:
A Justice Court does not have subject matter jurisdiction to determine matters involving title to and possession of real property.
Mont. Code Ann. § 25-31-101(1) . In such matters, the Justice must suspend all further proceedings in the action and certify the pleadings from his docket to the clerk of the district court of the county.Mont. Code Ann. § 25-31-102(1) . In her Answer, Ms. Lemire raises counterclaims for trespass, conversion based on alleged intrusions and destructions of parts of the premises. [Citation to Amended Answer.] To sustain her claims, Ms. Lemire will rely on alternative legal theories, among them that she holds a freehold life estate under the Rental Agreement.
Therefore, based on the court’s lack of jurisdiction over questions involving the title to or possession of real property, she concluded, “this Court is precluded from fully adjudicating the matters before it.”
¶20 Significantly, this is the first instance in all of the foregoing filings that Lemire explicitly raised the possibility that her interest in the
¶21 On May 10, 2004, the Justice Court denied Lemire’s motion to stay. Acknowledging that it does not have jurisdiction to decide a question of title to real property, the court concluded that the issue of whether Lemire had an ownership interest in the subject property was not before the court because she had not raised it in a timely manner:
[
Sections 3-10-301(1)(b) and25-31-102 ] require[] the Defendant to raise the issue of a question of title to real property in the vertified [sic] answer. Defendant has failed to do so. . . .Counsel is correct that jurisdiction cannot be granted to the Court where it is precluded by statute. However, this Court has jurisdiction over the issues that have been properly and timely raised. Plaintiff has initiated an action under the Montana Residential Landlord Tenant Act, which is within the jurisdiction of this Court. Defendant’s ANSWER and AMENDED ANSWER raised no issues (at least legitimate issues) that are beyond the jurisdiction of this Court. Defendant NOW wants to raise an issue that involves a question of title to real property that is beyond the jurisdiction of this Court. Unfortunately for Defendant, that ship has sailed. Defendant could have timely raised such an issue, but Defendant did not. Both
§ 3-10-301[(1)](b) and§ 25-31-102 require Defendant to raise this issue in the verified answer. By failing to do so, Defendant has effectively waived this claim.
¶22 Finally, on May 12, 2004, the case went to a jury, which found in favor of the Stanleys on their complaint for possession, but awarded no money damages. The jury also dismissed Lemire’s two remaining counterclaims for breach of agreement and breach of the covenant of good faith and fair dealing. (As for her other counterclaims, two were dismissed pretrial and three more were dismissed pursuant to a directed verdict at the close of testimony.) In its judgment, dated May 23, 2004, the Justice Court ordered that “[the Stanleys] [are] granted
¶23 Lemire timely appealed to the District Court, which on August 26, 2005, affirmed the judgment of the Justice Court on all issues except the issue of attorney fees and costs. The District Court’s reasoning is discussed below in the relevant contexts.
GENERAL STANDARD OF REVIEW
¶24 The Justice Court was a court of record at the time Suit #2 was tried. Accordingly, on Lemire’s appeal from the Justice Court, the District Court functioned effectively as an intermediate appellate court. See
¶25 Acting within its appellate capacity, a district court is not in a position to make findings of fact or discretionary trial court rulings. Rather, the court is “confined to review of the record and questions of law.”
¶26 Consequently, a district court’s review on an appeal from a lower court of record is no broader than this Court’s review of a lower court judgment. Accordingly, we review the case as if the appeal had
¶27 In the case at hand, the appropriate standards of review are identified where applicable in the context of the issues discussed below.
DISCUSSION
¶28 1. Does this Court have jurisdiction over Lemire’s appeal?
¶29 As a threshold matter, we must determine whether we have jurisdiction over Lemire’s appeal. As explained below, the facts bearing on this issue implicate both this Court’s jurisdiction and the District Court’s jurisdiction over this case. Cf. City of Billings v. Costa, 2006 MT 181, ¶ 9, 333 Mont. 84, ¶ 9, 140 P.3d 1070, ¶ 9 (observing that without a final judgment in the municipal court, both this Court and the district court would lack jurisdiction over Costa’s appeal). This
¶30 Jurisdiction involves the fundamental power and authority of a court to determine and hear an issue. State v. Diesen, 1998 MT 163, ¶ 5, 290 Mont. 55, ¶ 5, 964 P.2d 712, ¶ 5; see also Peña v. State, 2004 MT 293, ¶ 21, 323 Mont. 347, ¶ 21, 100 P.3d 154, ¶ 21 (“‘Jurisdiction as applied to courts is the power or capacity given by law to a court to entertain, hear and determine the particular case or matter.’” (emphasis omitted) (quoting State ex rel. Johnson v. District Court of Eighteenth Judicial Dist., 147 Mont. 263, 267, 410 P.2d 933, 935 (1966))); Eberhart v. United States, 546 U.S. 12, ___, 126 S.Ct. 403, 405 (2005) (per curiam) (equating “jurisdictional” with “prescriptions delineating the classes of cases (subject-matter jurisdiction) and the persons (personal jurisdiction) falling within a court’s adjudicatory authority” (internal quotation marks omitted)).
¶31 As such, we stated in Thompson v. Crow Tribe of Indians, 1998 MT 161, ¶ 12, 289 Mont. 358, ¶ 12, 962 P.2d 577, ¶ 12, that jurisdictional issues “transcend procedural considerations.” Likewise, we noted in Corban v. Corban, 161 Mont. 93, 96, 504 P.2d 985, 987 (1972), that “lack of jurisdiction over the subject matter can be raised at any time and a court which in fact lacks such jurisdiction cannot acquire it even by consent of the parties.” And in In re Marriage of Lance, 213 Mont. 182, 186-87, 690 P.2d 979, 981 (1984), we observed that once a court determines that it lacks subject matter jurisdiction, “it can take no further action in the case other than to dismiss it” (citing
¶32 Consistent with these principles, we have held in a number of cases that a court may address the question of its jurisdiction sua sponte. State v. Reeder, 2004 MT 244, ¶ 4, 323 Mont. 15, ¶ 4, 97 P.3d 1104, ¶ 4 (citing Losleben v. Oppedahl, 2004 MT 5, ¶ 25, 319 Mont. 269, ¶ 25, 83 P.3d 1271, ¶ 25, in turn citing Trombley v. Mann, 2001 MT 154, ¶ 6, 306 Mont. 80, ¶ 6, 30 P.3d 355, ¶ 6). Similarly, the United States Supreme Court recently observed that
subject-matter jurisdiction, because it involves the court’s power
to hear a case, can never be forfeited or waived. Moreover, courts, including this Court, have an independent obligation to determine whether subject-matter jurisdiction exists, even in the absence of a challenge from any party.
Arbaugh v. Y & H Corp., ___ U.S. ___, ___, 126 S.Ct. 1235, 1244 (emphasis added, citation and internal quotation marks omitted). Accordingly, we will proceed, sua sponte, to address the question of our jurisdiction over Lemire’s appeal.
¶33 The precise jurisdictional issues before us arise out of the sequence and timing of the Justice Court’s entry of judgment vis-à-vis the Stanleys’ post-trial motion for attorney fees, and the District Court’s order remanding the case to the Justice Court “to hear and decide the reasonable amount of fees and costs to be awarded.” With respect to the former, the Stanleys’ action against Lemire proceeded to a jury trial on May 12, 2004. That same day, as noted in the facts above, the jury rendered a verdict in favor of the Stanleys on their complaint for possession, but awarded no money damages, and also dismissed Lemire’s two remaining counterclaims. The following day (May 13, 2004), the Stanleys filed their motion for attorney fees.
¶34 Pursuant to the Montana Justice and City Court Rules of Civil Procedure (
¶35 Notwithstanding, the Justice Court entered judgment on May 24, 2004—three days prior to the expiration of Lemire’s response period.6 It is not clear whether the court miscalculated the deadline for her response, assumed that Lemire would not be responding to the Stanleys’ motion, or concluded that she had implicitly waived such a response by filing her notice of appeal on May 18, 2004. In any event, because the Justice Court entered its judgment while one of the parties still had time under the Rules to respond to a pending motion, we must determine whether, under the jurisdictional provisions set forth below, that judgment is one from which a party may take an appeal.
¶36
¶37 Here, the judgment rendered by the Justice Court on May 24, 2004, disposed of all pending motions and thus constituted a “final determination of the rights of the parties.” However, it was rendered prematurely—before the expiration of Lemire’s time to respond to the Stanleys’ motion for attorney fees. In this regard, it is necessary to clarify the difference between a “void” judgment and a judgment which is merely “voidable.” As the Sixth Circuit recently observed:
“Certain procedural irregularities, not amounting to lack of jurisdiction over the person or subject matter, are sometimes characterized as making a judgment ‘voidable’. This means that these judgments may be set aside upon a timely application in the same proceedings as a matter of judicial discretion.”
Days Inns Worldwide, Inc. v. Patel, 445 F.3d 899, 907 (6th Cir. 2006) (quoting Abbott v. Howard, 451 N.W.2d 597, 599 (Mich.App. 1990)). Consistent with this principle, the court concluded that “disregarding response times set forth in the local civil rules and the Federal Rules of Civil Procedure . . . rendered the instant judgment merely voidable as to appellant.” Days Inns Worldwide, 445 F.3d at 907.
¶38 Likewise, in the case at hand, the Justice Court’s entry of judgment on May 24, 2004—though it was entered prematurely and thereby impinged upon Lemire’s right to respond to the Stanleys’ motion—was at that point merely voidable. Lemire could have filed a timely motion to vacate the judgment and permit her the proper time to respond. Specifically,
¶39 This fact distinguishes the case at hand from State v. Bonamarte, 2006 MT 291, 334 Mont. 376, 147 P.3d 220, where we determined that
¶40 On Bonamarte’s appeal to this Court, we observed that his sentence appeared to be “unresolved” and, therefore, that we needed to address whether we had jurisdiction over the appeal. Bonamarte, ¶ 5. Noting that an appeal may be taken by a defendant “‘only from a final judgment of conviction and orders after judgment,’” Bonamarte, ¶ 6 (quoting
The Municipal Court’s sentencing order imposed restitution on Bonamarte only if the State requested it within sixty days of the order and the court held a hearing on costs. The State requested restitution within sixty days and noted that Bonamarte could request a hearing. Bonamarte appealed his conviction, however, two days before the State had requested restitution and before the Municipal Court could hold the required hearing. The fact that Bonamarte’s sentence was pending at the time of his appeal to the District Court prevented Bonamarte from appealing a “final judgment of conviction” under
§ 46-20-104, MCA . Thus, Bonamarte’s appeal to the District Court was premature, and the District Court had no jurisdiction to consider the appeal.
Bonamarte, ¶ 7. Accordingly, we dismissed the appeal without prejudice. Bonamarte, ¶ 12.
¶41 The case at hand is a variation on Bonamarte. When the Justice Court entered judgment prematurely, Lemire could have filed a motion for relief under
¶42 Accordingly, because the judgment rendered by the Justice Court disposed of all pending motions and thus constituted a final determination of the rights of the parties, and furthermore because Lemire did not file a timely motion for relief from the judgment alerting the Justice Court to the fact that her right to respond to the Stanleys’ motion for attorney fees had been infringed, we therefore conclude that the Justice Court’s judgment is an appealable judgment. Concomitantly, we also conclude that the District Court, pursuant to
¶43 With respect to this Court’s jurisdiction over the appeal, we first note that the source of our jurisdiction is Article VII, Section 2 of the Montana Constitution. Of specific relevance to the issue at hand,
¶44 The form of the judgment entered by a district court acting as an intermediate appellate court, in turn, is defined by statute. Specifically, a district court reviewing the judgment of a justice’s court
¶45 Here, the District Court affirmed the Justice Court’s judgment “on all issues . . . except on the issue of fees and costs.” With respect to the latter, the court concluded that “a hearing on attorneys fees and costs is appropriate”; therefore, the court ordered that “[t]he case is remanded for the Justice Court to hear and decide the reasonable amount of fees and costs to be awarded and to determine the date when the Plaintiffs may re-take possession.” Thus, since the District Court affirmed the Justice Court’s judgment in part, reversed the judgment in part, and itself “render[ed] a judgment” “direct[ing] that a . . . further proceeding be had” in the Justice Court, its order on appeal constitutes a “judgment” as contemplated by
¶46 However, as we explained in B.P.,
Rule 1(b)(1), M.R.App.P. , expressly provides that an appeal may be taken from a final judgment entered in a district court action. A final judgment is one which constitutes a final determination of the rights of the parties; any judgment, order or decree leaving matters undetermined is interlocutory in nature and not a final judgment for purposes of appeal.
B.P., ¶ 15 (emphases added). Accordingly, if a judgment which does not constitute a final determination of the rights and obligations of the parties in the action or proceeding is nevertheless appealed, both the district court and this Court are without jurisdiction over that appeal. The appellate process folds, no decision on the merits may be issued, and the case returns to the last court which had jurisdiction for that court to enter a final judgment. See B.P., ¶ 15; City of Billings v. Costa, 2006 MT 181, ¶ 9, 333 Mont. 84, ¶ 9, 140 P.3d 1070, ¶ 9; Bonamarte, ¶¶ 7-12.
¶47 In the case at hand, we must determine what effect, if any, the court’s remand order had on the finality of its judgment. We recently addressed this same question—though under the applicable criminal statutes—in Costa. The district court, on Costa’s appeal from the
If the District Court’s order containing the remand is not a “final judgment,” this Court lacks jurisdiction. See
Rule 1(d), M.R.App.P. ;Section 46-20-104(1), MCA ; Reeder, ¶ 7 (citations omitted); State v. Diesen, 1998 MT 163, ¶¶ 3-4, 290 Mont. 55, ¶¶ 3-4, 964 P.2d 712, ¶¶ 3-4 (citations omitted). By the same token, without a “final judgment”—including sentencing—in the Municipal Court, Costa’s appeal to the District Court would have been premature and the District Court—as well as this Court—would lack jurisdiction over the appeal. SeeRule 5(b)(2), U.M.C.R.App. ;§ 46-20-104(1), MCA ;§ 46-1-202(11), MCA ;—Diesen, ¶ 3.
Costa, ¶ 9. As it turned out, however, our review of the record disclosed that the municipal court had, in fact, sentenced Costa before she appealed to the district court. Costa, ¶ 10. On this basis, we stated that the district court’s order remanding for imposition of sentence was “both unnecessary and a nullity” and had “no effect on the ‘final judgment’ status” of the municipal court’s judgment or the district court’s judgment. Costa, ¶¶ 10, 16. Accordingly, we concluded that the district court had jurisdiction over Costa’s appeal to that court, Costa, ¶ 10, and that we, likewise, had jurisdiction over Costa’s appeal to this Court, Costa, ¶ 16.
¶48 Similarly, in the case at hand, we observe that the District Court’s remand order was not due to any failure on the Justice Court’s part to make “a final determination of the rights of the parties” (unlike the situation we perceived at the outset of Costa, where the remand order implied that the municipal court had not yet imposed sentence on Costa, and unlike the situation in Bonamarte, where the restitution portion of Bonamarte’s sentence in fact had not been resolved at the time of his appeal to the district court). Indeed, as explained above, the judgment rendered by the Justice Court disposed of all pending motions and thus constituted a final determination of the rights of the parties. Likewise, the District Court’s judgment constituted a final determination of the issues presented to it on appeal; in other words,
¶49 As we did in Costa, therefore, we conclude that the District Court’s remand order had no effect on the appealable status of the Justice Court’s judgment or on the “final” status of the District Court’s judgment. Accordingly, pursuant to
¶50 2. Did the District Court err in its determination that the Justice Court retained subject matter jurisdiction over the Stanleys’ action against Lemire after she asserted a claim of title to the subject property?
¶51 Lemire challenges the District Court’s conclusion that the Justice Court had subject matter jurisdiction over Suit #2. She first argues at great length that she in fact holds a life estate in the subject property and that the Justice Court, therefore, “[did] not have subject matter jurisdiction because the controversy involves questions of title to and possession of real property.” Yet, not only is this issue not properly before us, given that it was not actually litigated at the trial level, it also is irrelevant. As outlined below, the question we must decide is not whether Lemire, in fact, has a life estate but, rather, whether her assertion of such was procedurally barred and, if not barred, whether it deprived the Justice Court of subject matter jurisdiction over the Stanleys’ cause of action.
¶52 Jurisdiction is conferred on the courts only by the Constitution or statutes adopted pursuant to the Constitution. State v. Osborne, 2005 MT 264, ¶ 12, 329 Mont. 95, ¶ 12, 124 P.3d 1085, ¶ 12 (citing State ex rel. Johnson v. District Court of Eighteenth Judicial Dist., 147 Mont. 263, 266, 410 P.2d 933, 935 (1966)). A court’s determination as to its jurisdiction is a conclusion of law, which is reviewed de novo to determine whether the court’s interpretation of the law is correct. In re Marriage of Christian, 1999 MT 189, ¶ 6, 295 Mont. 352, ¶ 6, 983 P.2d 966, ¶ 6; Koke v. Little Shell Tribe, 2003 MT 121, ¶ 7, 315 Mont. 510, ¶ 7, 68 P.3d 814, ¶ 7; CBM Collections, Inc. v. Ferreira, 2005 MT 170, ¶ 4, 327 Mont. 479, ¶ 4, 115 P.3d 211, ¶ 4.
¶53
¶54 First,
The justices’ courts have concurrent jurisdiction with the district courts within their respective counties in actions of forcible entry and unlawful detainer and in actions brought under
Title 70, chapter 24 [emphasis added].
The Justice Court determined that “this action is an action for possession under
¶55 Next,
The parties to an action in a justice’s court cannot give evidence upon any question which involves the title or possession of real property . . . , nor can any issue presenting such question be tried by such court; provided that, in cases of forcible entry and unlawful detainer of which justices’ courts have jurisdiction, any evidence otherwise competent may be given, and any question properly involved therein may be determined [emphases added].
¶56 It is evident from this language that the Legislature has determined that questions of title to real property shall not be decided by the justices’ courts.7 Indeed,
¶57 Probably for this reason, Lemire now argues (contrary to her original theory) that the Stanleys’ action was not brought under Title
The “Rental Contract”, despite its denomination, conveys a life estate in the Life Tenant [Lemire]. Therefore, Grantors’ [the Stanleys’] action should have been brought as one for quiet title pursuant to
Mont. Code Ann. § 70-28-101 et. seq.
The District Court, however, observed that the Stanleys had “pled that there was a rental agreement, that the agreement was breached and how the agreement was breached”—an assessment of the record with which we agree. Indeed, during the early stages of the Justice Court proceedings, as the District Court aptly noted, “[Lemire] went out of her way to stress that landlord/tenant law did apply [to her situation with the Stanleys].” Given these considerations, we reject her current characterization of the Stanleys’ cause of action as one to quiet title. To the contrary, the Stanleys’ pleadings establish that their action was brought under
¶58 Lemire points out that “lack of subject matter jurisdiction may be raised by motion or sua sponte at any time” (citing
¶59 Determinative of this question are
in actions for damages not exceeding $7,000, exclusive of court costs, . . . for injury to real property when no issue is raised by the verified answer of the defendant involving the title to or possession of the real property.
If it appears from the answer of the defendant, verified by his oath, that the determination of the action will necessarily involve the question of title or possession to real property . . . , the justice must suspend all further proceedings in the action and certify the pleadings and, if any of the pleadings are oral, a transcript of the same from his docket to the clerk of the district court of the county. . . . When the action is certified to the district court, upon the answer of the defendant, he must file an undertaking, to be approved by the justice, to the effect that he will pay all costs that may be awarded against him on the trial in the district court.
¶60 Based on these provisions, the District Court reasoned that “the Justice Court had subject matter jurisdiction over this case because Lemire failed to raise her claim of a dispute over an estate in real property in a timely fashion.” From this, it appears that the District Court—like the Justice Court—deemed Lemire’s question of title waived for purposes of Suit #2. We agree.
¶61
If it appears at any point in the proceedings in a justice’s court that the determination of the action will involve the question of the state’s liability to make a payment of money, the justice shall sever that issue and dismiss the action as to it. If the issue is not severable, the justice shall dismiss the entire action.8 [Emphasis added.]
¶62 The difference between subsections (1) and (2) of
¶63 Accordingly, we conclude that Lemire’s question of title—i.e., her claim of a life estate in the subject property—had to be raised in her answer (or in her timely amended answer) and that if she failed to do so, the question was waived for purposes of Suit #2.
¶64 In this regard, Lemire insists that she “preserved the issue of the nature of her interest in the premises” by alerting the Justice Court in a number of motions to its lack of subject matter jurisdiction and by means of factual allegations in her motion to dismiss, her answer, and other motions. As to the former, she points out that in her motion to dismiss she “advis[ed] the court ‘that Ms. Lemire’s lease is for life’” and that in her reply supporting said motion she “advised the Justice Court again that ‘the Plaintiffs granted Ms. Lemire a lease for the remainder of her life.’” She implies that these references were sufficient to notify the court that a question of title to the subject property was necessarily involved in the parties’ dispute. As to the factual allegations, she asserts that “[u]nder
¶65 Presented with similar arguments, the District Court concluded that Lemire did not raise the question of title to the subject property
[T]he Court fails to see where Lemire claimed an interest in the premises beyond that of a tenant. In her brief supporting her motion to dismiss, she clearly states that “[t]he law of unlawful detainer, however, is not applicable in this case because Ms. Lemire’s lease is a residential lease government (sic) by Title 70 Chapter 24 of the Montana Code Annotated, and because Ms. Lemire’s lease is a lease for life.” [Citation.] In her answers, she simply describes the term of the lease as one for life, not a life estate. [Second alteration in original.]
¶66 We agree with the District Court’s assessment and, thus, reject Lemire’s wholly unrealistic characterizations of her motion to dismiss, answer, and amended answer. Given that she argued throughout the early stages of the Justice Court proceedings that the Stanleys’ cause of action was governed by landlord-tenant law, the District Court properly rejected her later claim that her use of the terms “leasehold estate” and “lease for life” in her motion to dismiss, answer, and amended answer should have “alert[ed]” the court to a question of title.
¶67 Thus, in summation, the Justice Court had subject matter jurisdiction over the Stanleys’ cause of action at the outset of the proceedings. Lemire’s claim of title to the subject property would have divested the court of jurisdiction had she timely asserted it. However,
¶68 3. Did the District Court err in affirming the Justice Court’s determination that the Stanleys were entitled to an award of attorney fees?
¶69 The Justice Court awarded the Stanleys attorney fees in the amount of $2,594.25 and costs of $60.00. On her appeal to the District Court, Lemire challenged this award on three grounds: first, the jury had been instructed that under
¶70 The District Court agreed with the Stanleys that the decision to award attorney fees is the province of the judge, not the jury. However, the court determined that a hearing on attorney fees and costs “is appropriate.” (The basis for this determination is not stated explicitly in the court’s order, but it appears to derive from the court’s immediately preceding observation: “Lemire argues that the Justice Court ruled on fees and costs before her time to object expired.”) Accordingly, the court ordered that “[t]he case is remanded for the Justice Court to hear and decide the reasonable amount of fees and costs to be awarded.”
¶71 On appeal to this Court, Lemire asserts that the District Court erred in affirming the Justice Court’s determination that the Stanleys were entitled to an award of attorney fees. In support of this position, she reiterates essentially the same contentions she advanced in the District Court: first, even if the award of attorney fees is a question of law, “the [Stanleys] did not fully recover the relief sought, and are therefore not the prevailing party”; and second, “before [Lemire’s] response time had lapsed, the Justice Court granted [the Stanleys’] Motion and awarded attorney fees . . . without gathering further evidence or conducting a hearing, based on unverified, unsigned invoices of [the Stanleys’] counsel.”
¶72 The general rule in Montana is that absent a statutory or contractual provision, attorney fees are not recoverable. National Cas. Co. v. American Bankers, 2001 MT 28, ¶ 27, 304 Mont. 163, ¶ 27, 19 P.3d 223, ¶ 27; accord Hoven v. Amrine, 224 Mont. 15, 17, 727 P.2d 533, 534 (1986) (“Attorney fees are allowed when they are provided for by statute or contractual provision.”). Here, an award of attorney fees was authorized by statute—specifically,
In an action on a rental agreement or arising under this chapter, reasonable attorney fees, together with costs and necessary disbursements, may be awarded to the prevailing party notwithstanding an agreement to the contrary.
¶73 By virtue of the word “may,” an award of attorney fees pursuant to this statute is discretionary. We review discretionary rulings for
¶74 As noted above,
¶75 With respect to reasonableness, we have stated that “for attorney fees to be awarded by a trial court, there must be some type of proof of amount and reasonableness introduced into the record by counsel.” In re Marriage of Mease, 2004 MT 59, ¶ 58, 320 Mont. 229, ¶ 58, 92 P.3d 1148, ¶ 58. Apparently because the Justice Court had ruled on the Stanleys’ motion for attorney fees before Lemire’s time to respond had expired, the District Court remanded the case precisely for the purpose of “hear[ing] and decid[ing] the reasonable amount of fees and costs to be awarded.” However, while this disposition was otherwise correct under our case law, we conclude that the District Court erred in affirming the Justice Court’s determination that the Stanleys were entitled to an award of attorney fees in the first place; thus, a remand to that court for a hearing on reasonableness is unnecessary.
¶76 As the plain language of
¶77 Accordingly, because each party prevailed on different issues, neither party was entitled to an award of attorney fees under
CONCLUSION
¶78 The judgment rendered by the Justice Court was an appealable judgment as contemplated by
¶79 The District Court correctly affirmed the Justice Court’s determinations that it initially had subject matter jurisdiction over the parties’ dispute and that it was not divested of jurisdiction by virtue of Lemire’s belated claim of title to the subject property. Pursuant to
¶80 The District Court, however, erred in affirming the Justice Court’s determination that the Stanleys were entitled to an award of attorney fees. Because both the Stanleys and Lemire were “prevailing part[ies]” in Suit #2, the Stanleys were not entitled to such an award.
¶81 Affirmed in part and reversed in part.
CHIEF JUSTICE GRAY, JUSTICES LEAPHART, COTTER and WARNER concur.
Notes
It is not clear on the record before us whether the Stanleys’ motion for attorney fees was, in fact, served by mail, since the certificate of mailing attached to the motion is undated and unsigned. However, such a determination is not necessary to resolve the jurisdictional issue before us because, as described below, the Justice Court entered its judgment prior to the expiration of the 10-day period to which Lemire was entitled irrespective of whether the Stanleys served their motion by mail.
Historically, the essential reason for excluding from the jurisdiction of the justice of the peace cases concerning real estate was that the justice of the peace was not learned in the law, and was not, therefore, competent to deal with questions of title often of difficult and intricate nature. Also, the court of the justice of the peace was not a court of record. . . . The obvious purpose of the statute setting up the municipal court and defining its jurisdiction is that of providing a tribunal for the speedy disposition of a large number of small causes. And the trial of cases involving an issue as to title, with attendant difficult and complicated questions of real property law, would act as a clog upon the calendar of the court.
Schwartz v. Murphy, 112 F.2d 24, 28 (D.C. Cir. 1940) (citations omitted); accord Stephens v. Hammersley, 550 P.2d 1268, 1270 (Alaska 1976).