SURETY BAIL BONDSMEN OF OKLAHOMA, INC. v. INSURANCE COMMISSIONER OF OKLAHOMASURETY BAIL BONDSMEN OF OKLAHOMA, INC. v. INSURANCE COMMISSIONER OF OKLAHOMA
DIVISION II
¶0 In 1990, the Oklahoma Insurance Commissioner was asked to construe
COURT OF CIVIL APPEALS’ OPINION VACATED;
DISTRICT COURT‘S JUDGMENT REVERSED AND
REMANDED WITH INSTRUCTIONS.
Mark T. Hamby and Gene C. Howard, Bonham & Howard, P.L.L.C., Tulsa, Oklahoma, for the appellants.
Sandra White Lavenue, Oklahoma City, Oklahoma, for appellee Oklahoma Insurance Department.
David H. Cole, Majorie Galt, Ronald L. Wallace, Oklahoma City, Oklahoma, for appellee Carisa Carrasco.1
¶1 The dispositive questions presented in this appeal are whether
I. HISTORY
¶2 In 1984, the Oklahoma Legislature amended the Bail Bondsmen Code,
¶3 In a letter addressed to the attorney and dated January 26, 1990, the assistant general counsel of the Oklahoma Department of Insurance (Department) responded:
[I]t is the informal opinion of the Oklahoma Insurance Commissioner that a professional bail bondsman may not write on more than ten (10) defendants per year in those counties in which he neither resides nor offices. However, the professional bail bondsman may appoint licensed surety agents to act in his behalf. Those surety agents may write an unlimited number of bonds in the county of their residence or office, but not both, as long as the amount written, coupled with that which the professional bondsman and his other appointed agents have written, does not exceed the professional bail bondsman‘s liability writing limit with the Oklahoma Insurance Commission.
Under this informal opinion, a professional bondsman is prohibited from writing bonds on more than ten defendants a year in a county in which the professional bondsman neither resides nor offices unless he authorizes a surety bondsman to act as his agent pursuant to a power of attorney.
¶4 Surety Bail Bondsmen of Oklahoma, Inc. and Cathy Boyd (collectively, plaintiffs) filed a complaint with the Department.3 They then filed a motion for summary adjudication, asking for a ruling “[t]hat any bonds written under the authority of a power of attorney are subject to the legal limitations imposed upon the principal bondsman, including the ten defendant out-of-county limit contained in
¶5 On April 7, 2005, the Department‘s administrative law judge (ALJ) held a hearing and, on June 23, 2005, issued an order. The ALJ stated the Commissioner‘s position regarding
[A] professional bail bondsman may appoint licensed surety bail bondsmen to act in his behalf. Those surety bail bondsmen may write an unlimited number of bonds in their county of registration, as long as the amounts written, coupled with that which the professional bondsman and his other appointed bondsmen have written, does not exceed the professional bail bondsman‘s liability writing limit with the Oklahoma Insurance Commissioner.
The ALJ succinctly stated the Commissioner‘s reasoning as it is the surety bondsman who writes the bond because the surety bail bondsman prepares and completes the appearance bond and files it with the court. The ALJ found that section 1320(B) is ambiguous and that the Commissioner‘s interpretation of section 1320(B) is reasonable.
¶6 The plaintiffs filed a petition appealing the agency‘s ruling and filed a brief in the district court.4 The plaintiffs’ positions in its brief before the district court, among other things, were (1)
¶8 The plaintiff intervenors appealed to this Court. The plaintiff intervenors, Carrasco, and the Commissioner filed briefs in this Court; and the appeal was assigned to the Court of Civil Appeals for disposition. The Court of Civil Appeals found that
II. ANALYSIS
¶9 The questions before us are ones of statutory construction which are questions of law subject to de novo review in the appellate court. St. John Medical Center v. Bilby, 2007 OK 37, ¶ 2, 160 P.3d 978, 979. De novo review is plenary, independent, and non-deferential to a lower court‘s decision. Id.
¶10 The Bail Bondsmen Code provides for four types of bondsmen: surety bondsmen, professional bondsmen, property bondsmen, and cash bondsmen.
¶11 A professional bondsman is a person who pledges cash as security for a bail bond.
¶12 Under the relevant provisions, a professional bondsman acts as the surety on a bail bond.
¶13 A surety bondsman is a person who is approved by the Commissioner and who is “appointed by an insurer or professional bondsman, by power of attorney.”
No bail bondsman shall become a surety on an undertaking unless he has first registered his license in the office of the sheriff and with the clerk of the district court in the county in which the bondsman resides and he may then become surety in any other county upon presenting to the official required to approve the sufficiency of bail, a certificate of such registration. A surety bondsman shall also file a certified copy of his appointment by power of attorney from each insurer which he represents as agent with each of said officers.
Under this provision, a bail bondsman acting as a surety, that is a professional bondsman but not a surety bondsman, is required to register his license in the county of his residence. Also after registering his license, a professional bondsman could act as a surety in the resident county and all other counties throughout the state without a numerical limitation on the bonds that could be written.
¶15 Apparently a problem arose with professional bondsmen not being accessible in the counties in which they were acting as sureties. So in 1984 the Legislature amended
A. . . .In any county in which a bondsman chooses to write surety, he shall also provide the court clerk with proof of constant accessibility in the county. Accessibility as herein required shall mean that the bondsman must have a duly authorized agent within the county with authority to make and execute a bail bond. . . .
B. Notwithstanding the foregoing provisions of this section, a bondsman may write bonds on no more than ten (10) defendants per year in each county in which he has not duly registered his license with the court clerk, by advising the court clerk in writing of his intention to do such writing.
¶16 In 1987, the Legislature again attempted to remedy the problems with professional bondsmen‘s absence in the counties wherein they were acting as sureties. See 1987 Okla. Sess. Laws 1277, ch. 211, § 18. The 1987 Legislature required a professional bondsman to provide proof of his residency in the county or proof that he offices in the county wherein he registers his license.
¶17 Section 1320 of title 59 was again amended in 1989. 1989 Okla. Sess. Laws 795, ch. 257, § 9. In 1989, the Legislature clarified that a professional bondsman could register his license in either the county where he resides or offices, but not both. It also changed
Notwithstanding the foregoing provisions of this section, a bondsman may write bonds on no more than ten defendants per year in each of the remaining seventy-six counties of this state in which the bondsman cannot register his license. . . .
These two amendments to section 1320(B) are tied to writing bonds and clearly show the Legislature‘s intent to limit a professional bondsman acting as a surety to writing on no more than ten defendants a year in any county other than the one in which the professional bondsman is registered.
¶18 In 1992, the ten bond rule was again amended and currently provides:
Notwithstanding the foregoing provisions of this section, a bondsman may write bonds on no more than ten defendants per year in each of the remaining seventy-six counties of this state in which the bondsman cannot register his license. Provided, however, a bondsman shall not be limited to writing bonds on only ten defendants per year in a county which does not have a licensed bondsman registered in said county. The bondsman shall advise the court clerk of each such county in writing of his intention to write bonds in the county and shall file a certified copy of his license with and pay a fee of Ten Dollars ($10.00) to each such court clerk.
1992 Okla. Sess. Laws 306, ch. 98, § 7 (codified at
¶19 In summary, the Legislature began with an open policy of allowing professional bondsmen to act as sureties in all counties. The Legislature in 1984 severely limited a professional bondsman‘s ability to act as a surety on a bond outside the county in which the professional bondsman was registered by injecting an accessibility factor and the ten bond rule. Again in 1987 because of apparent problems with professional bondsmen acting as sureties outside of the county where they were registered, the Legislature required them to provide proof of their registration in counties where they were not allowed to register.11
¶21 By beginning with the words “[n]otwithstanding the foregoing provisions of this section,” section 1320(B) references and incorporates section 1320(A) of title 59. The first sentence of section 1320(B) continues with “a bondsman may write bonds on no more than ten defendants per year in each of the remaining seventy-six counties of this state in which the bondsman cannot register his license.” (Emphasis added.) Section 1320(A) requires only bondsmen acting as sureties to register their licenses and, thus, section 1320(B)‘s ten bond rule is applicable to bondsmen who are sureties, in this case professional bondsmen.13 Consistent with the Commissioner‘s construction and the legislative history, section 1320(B) field unambiguously limits a professional bondsman to writing on no more than ten defendants in a county where the professional bondsman is not registered if the county has other registered bondsmen.
¶22 We next turn to the part of the Commissioner‘s construction which would allow professional bondsmen to circumvent
¶23 Under the common law, a relationship of agency is established when two parties agree that one, the agent, shall act on behalf and subject to the control of the other, the principal. Restatement (Third) of Agency § 1.01 (2005). “An agency relationship generally exists if two parties agree one is to act for the other.” McGee v. Alexander, 2001 OK 78, ¶ 29, 37 P.3d 800, 807. Under the Bail Bondsman Code, a professional bondsman and surety bondsman agree that the surety bondsman will act on behalf of and under the control of the professional bondsman pursuant to a power of attorney.
¶24 In measuring a surety bondsman‘s authority and in construing
¶25 Here, a professional bondsman is limited to writing “bonds on no more than ten defendants per year in each of the remaining seventy-six counties of this state in which the bondsman cannot register his license.”
¶26 In further support of this conclusion, under the rules of statutory construction, we presume that the Legislature has not done a vain and useless act. Strong v. Laubach, 2004 OK 21, ¶ 11, 89 P.3d 1066, 1070. It is nonsensical to construe
¶28 Under the Commissioner‘s construction of
III. CONCLUSION
¶29 We find that
¶30 The Court of Civil Appeals’ opinion is vacated. The district court‘s judgment is reversed. The cause is remanded to the district court for further proceedings consistent with this opinion. See
COURT OF CIVIL APPEALS’ OPINION VACATED; DISTRICT COURT‘S JUDGMENT REVERSED AND REMANDED WITH INSTRUCTIONS.
Edmondson, C.J., Taylor, V.C.J., and Kauger, Winchester, and Reif, JJ., concur.
Watt and Colbert, JJ., dissent.
Hargrave, J., disqualified.
Notes
We then directed the defendant intervenors to respond and show cause why the term “et al.” should not be stricken. In their response, they failed to show that any defendant intervenor, other than Carrasco, is a proper party defendant to the case.
The district court found that Surety Bail Bondsmen of Oklahoma, Inc. “is not a licensed ‘Insurer‘, as defined in
Carrasco incorrectly states that, in 2005, the Legislature voted against House Bill 2057 which was an attempt to add subsection 1320(C) in title 59 which provided in part: [N]o more than ten (10) bonds per year may be written in any county outside the home county of the professional bondsman by either the professional bondsman, the appointed surety of the bondsman, or any combination of them, or all of them combined.
The Legislature did not vote against House Bill 2057. In fact, House Bill 2057 was not brought to the legislative body for a vote. See 1 Journal of the House of Representatives of the First Regular Session of the Fiftieth Legislature 278, 313 (2005).