No. 14442
IN THE SUPREME COURT OF THE STATE OF MONTANA
-
GERALD F. HOPKINS and MARY M. HOPKINS,
Plaintiffs and Respondents,
SCOTTIE HOMES, INC., a Corporation,
Chief Industries, Inc., a Corporation,
and THE FIRST NATIONAL BANK OF GLASGOW,
MONTANA, a corporation,
Defendants and Appellants.
Appeal from: District Court of the Fourteenth Judicial
District,
Honorable Nat Allen, Judge presiding.
Counsel of Record:
For Appellants:
Robert Hurly and Paul Hoffmann, Glasgow, Montana
Harrison, Loendorf, Poston and James T. Harrison, Sr.,
Helena, Montana
James T. Harrison Sr., argued, Helena, Montana
For Respondents:
Ask and Pratt, Roundup, Montana
Thomas M. Ask argued, Roundup, Montana
Anderson, Symmes, Brown, Gerbase, Cebull & Jones,
-
Billings, Montana
Submitted: February 2, 1979
Decided:
M R2 cm
Mr. J u s t i c e John Conway H a r r i s o n d e l i v e r e d t h e Opinion of t h e
Court.
T h i s i s a n a p p e a l by d e f e n d a n t s , S c o t t i e Homes, I n c . ,
and F i r s t N a t i o n a l Bank o f Glasgow, from a n o r d e r o f t h e
D i s t r i c t C o u r t o f t h e F o u r t e e n t h J u d i c i a l D i s t r i c t , Mussel-
s h e l l County, d e n y i n g t h e i r motion f o r a change of venue.
P l a i n t i f f s G e r a l d and Mary Hopkins purchased a new
" B o n a v i l l a " m o b i l e home from d e f e n d a n t S c o t t i e Homes, I n c . ,
on J u n e 1, 1976. They e x e c u t e d a s e c u r i t y agreement t o
f i n a n c e t h e b a l a n c e o f t h e p u r c h a s e p r i c e , and t h e s e c u r i t y
agreement was a s s i g n e d by d e f e n d a n t S c o t t i e Homes, I n c . , to
d e f e n d a n t F i r s t N a t i o n a l Bank of Glasgow. The m o b i l e home
w a s d e l i v e r e d t o and s e t up on p l a i n t i f f s ' p r o p e r t y n e a r
Roundup, Montana.
W i t h i n a few months t h e r o o f of t h e m o b i l e home began
t o l e a k whenever i t r a i n e d c a u s i n g s u b s t a n t i a l damage t o t h e
home's i n t e r i o r . P l a i n t i f f s n o t i f i e d defendant S c o t t i e
Homes, I n c . , of t h e problem and a l s o d e f e n d a n t Chief Indus-
tries, Inc., t h e m a n u f a c t u r e r of t h e m o b i l e home. After
numerous l e t t e r s , phone c a l l s , and t h e t h r e a t of l e g a l
a c t i o n , t h e r o o f of t h e m o b i l e home was r e s h i n g l e d d u r i n g
t h e summer o f 1977, b u t t h e problem p e r s i s t e d . When p l a i n -
t i f f s n o t i f i e d d e f e n d a n t s t h a t t h e r e p a i r work had n o t c u r e d
t h e d e f e c t s , d e f e n d a n t s answered t h a t t h e w a r r a n t y p e r i o d
had e x p i r e d and w i t h i t t h e i r o b l i g a t i o n . T h i s prompted
p l a i n t i f f s t o g i v e d e f e n d a n t s a second n o t i c e of r e c i s s i o n ,
c a n c e l l a t i o n and r e v o c a t i o n , as t h e y had done p r i o r t o
h a v i n g t h e r o o f r e p a i r e d t h e p r e v i o u s summer.
On J a n u a r y 2 8 , 1978, p l a i n t i f f G e r a l d Hopkins climbed
o n t o p o f t h e r o o f t o t r y t o d i v e r t t h e f l o w of w a t e r t h a t
w a s s t i l l r u n n i n g i n t o t h e home. Because i c e had formed on
t h e r o o f , h e s l i p p e d and i n j u r e d h i s back. Plaintiffs
t h e r e a f t e r brought t h i s a c t i o n seeking:
" [ I ] c a n c e l l a t i o n of p u r c h a s e and s e c u r i t y
a g r e e m e n t s and of b a l a n c e s due on p u r c h a s e of
a m o b i l e home, [2] t h e removal of t h e m o b i l e
home from t h e i r l a n d , [ 3 ] r e f u n d o f a l l pay-
ments t h e y had made on t h e i r m o b i l e home pur-
c h a s e , [ 4 ] damages f o r b r e a c h o f c o n t r a c t
r e g a r d i n g p u r c h a s e o f t h e m o b i l e home, and
[ 5 ] damages f o r back i n j u r i e s a l l e g e d l y s u f -
f e r e d by o n e p l a i n t i f f when h e f e l l o f f t h e
i c y r o o f o f t h e m o b i l e home."
The a c t i o n was f i l e d i n t h e D i s t r i c t C o u r t o f t h e F o u r t e e n t h
J u d i c i a l D i s t r i c t , M u s s e l s h e l l County, t h e c o u n t y i n which
p l a i n t i f f s r e s i d e and i n which t h e m o b i l e home i s l o c a t e d .
Defendants S c o t t i e Homes, I n c . , and F i r s t N a t i o n a l Bank of
Glasgow moved f o r a change o f venue t o V a l l e y County, t h e
c o u n t y i n which e a c h d e f e n d a n t ' s p l a c e o f b u s i n e s s i s
located.
The s o l e i s s u e f o r r e v i e w by t h i s C o u r t i s whether t h e
D i s t r i c t C o u r t e r r e d i n denying d e f e n d a n t ' s motion f o r
change o f venue.
This Court has held t h a t " [ t l h e general r u l e governing
venue i n c i v i l a c t i o n s i s t h a t t h e a c t i o n s h a l l be t r i e d i n
t h e c o u n t y i n which t h e d e f e n d a n t r e s i d e s a t t h e commence-
ment o f t h e a c t i o n . " McGregor v . S v a r e ( 1 9 6 8 ) , 1 5 1 Mont.
520, 523, 445 P.2d 571, 573. The g e n e r a l r u l e w i t h i t s
e x c e p t i o n s i s c o d i f i e d i n s e c t i o n 93-2904, R.C.M. 1947, now
s e c t i o n s 25-2-101, 25-2-102, and 25-2-108 MCA, which pro-
vides i n pertinent part:
". . . t h e a c t i o n s h a l l be t r i e d i n t h e county
i n which t h e d e f e n d a n t s , o r any of them, may
r e s i d e a t t h e commencement of t h e a c t i o n .. .
A c t i o n s upon c o n t r a c t s m a y b e t r i e d in the
county which t h e c o n t r a c f - w a s - -e performed,
- to b
and a c t i o n s f o r t o r t s in..t h - c o u n t y where the
e
t o r t was committed ... "
,
(Empna: i s added.)
s
This Court has s t a t e d t h a t t h e r u l e with r e s p e c t t o
t h e performance e x c e p t i o n i s " t h a t t h e p l a c e of performance
must b e e v i d e n t e i t h e r by ( a ) t h e e x p r e s s terms of t h e
c o n t r a c t , o r ( b ) by n e c e s s a r y i m p l i c a t i o n t h a t a c o u n t y
o t h e r than t h a t of t h e defendant's residence i s intended t o
b e t h e c o u n t y of performance." Brown v . F i r s t F e d e r a l
S a v i n g s and Loan Assn. ( 1 9 6 4 ) , 1 4 4 Mont. 149, 153, 394 P.2d
1017, 1019.
N e i t h e r p a r t y s e e k s t o d e m o n s t r a t e t h e p l a c e of p e r -
formance by t h e e x p r e s s t e r m s of t h e c o n t r a c t , and s o t h i s
C o u r t must d e c i d e whether a c o u n t y o t h e r t h a n t h a t of d e f e n -
d a n t s ' r e s i d e n c e i s i n t e n d e d t o b e t h e c o u n t y of performance
by n e c e s s a r y i m p l i c a t i o n . I n determining t h i s , t h e Court
may c o n s i d e r t h e c o n t r a c t - p l a i n t i f f s '
and supporting a f f i d a v i t
s u b m i t t e d w i t h t h e i r memorandum i n o p p o s i t i o n t o change of
venue. S t a t e e x r e l . I n t e r s t a t e Lumber Co. v. D i s t r i c t
C o u r t ( 1 9 1 8 ) , 54 Mont. 602, 608, 172 P. 1030, 1033. When
a f f i d a v i t s s u p p l i e d by o n e o f t h e p a r t i e s w i t h r e s p e c t t o
t h e motion f o r change of p l a c e o f t r i a l are u n c o n t r a d i c t e d ,
t h e s t a t e m e n t s of f a c t s s e t f o r t h t h e r e i n must be t a k e n a s
true. F r a s e r v. C l a r k ( 1 9 5 4 ) , 128 Mont. 1 6 0 , 173, 273 P.2d
105, 1 1 2 .
D e f e n d a n t s a r g u e t h a t t h e o n l y c o n t i n u i n g performance
c o n t e m p l a t e d by t h e p a r t i e s w a s t h e payment of i n s t a l l m e n t s
t o t h e bank i n Glasgow. P l a i n t i f f s , i n t h e i r a f f i d a v i t , say
t h a t d e l i v e r y of t h e m o b i l e home t o M u s s e l s h e l l County was
a t a l l t i m e s c o n t e m p l a t e d by t h e p a r t i e s ; t h a t p l a i n t i f f s
had no c o n t a c t w i t h t h e bank a t any t i m e ; t h a t t h e p l a c e of
performance was where t h e home was d e l i v e r e d and s e t - u p ; and
t h a t t h e p r o p e r venue f o r t h i s a c t i o n i s M u s s e l s h e l l County
i f one c o n s i d e r s t h e convenience of t h e w i t n e s s e s .
I n Hardenburgh v. Hardenburgh ( 1 9 4 4 ) , 1 1 5 Mont. 469,
478, 146 P.2d 151, 154, t h i s C o u r t s t a t e d :
"Agreement must b e c l e a r . A m e r e d i r e c t i o n by
t h e s e l l e r a s t o t h e p l a c e of payment i s n o t s u f -
f i c i e n t , n o r c a n a promise t o r e m i t t o c o v e r t h e
p u r c h a s e p r i c e b e sued upon by t h e s e l l e r i n t h e
c o u n t y o f t h e p o i n t t o which t h e r e m i t t a n c e i s
t o b e made."
T h i s C o u r t , i n Brown v . F i r s t F e d e r a l S a v i n g s & Loan
Assn. ( 1 9 6 4 ) , 1 4 4 Mont. 1 4 9 , 154, 394 P.2d 1017, 1020,
reviewed a number of c a s e s i n v o l v i n g venue q u e s t i o n s l o o k i n g
f o r a common element. The C o u r t s t a t e d t h a t " [ i l n a l l of
t h e s e c a s e s t h e c o u n t y o f a c t i v i t y , a s r e f l e c t e d by t h e
-
t e r m s of t h e c o n t r a c t , w a s deemed t h e p l a c e of performance."
(Emphasis added.) The c o n t r a c t i n t h e i n s t a n t c a s e d o e s
e x p r e s s l y p r o v i d e t h a t " [ c ] u s t o m e r w i l l pay S c o t t i e Homes
f o r B l o c k i n g w a t e r and sewer hookup," a c t i v i t y which would
n e c e s s a r i l y t a k e p l a c e w i t h i n M u s s e l s h e l l County.
I t s h o u l d b e n o t e d t h a t s e c t i o n 93-2904, R.C.M. 1947,
now s e c t i o n 25-2-102 MCA, p r o v i d e s f o r a t o r t e x c e p t i o n i n ad-
d i t i o n t o t h e c o n t r a c t performance e x c e p t i o n . In the instant
c a s e , p l a i n t i f f s have a l l e g e d t o r t i o u s c o n d u c t by d e f e n d a n t s
i n M u s s e l s h e l l County r e s u l t i n g i n p h y s i c a l i n j u r i e s . This
a l l e g a t i o n , o n i t s f a c e , when c o n s i d e r e d w i t h t h e a l l e g a t i o n s
r e g a r d i n g performance of t h e c o n t r a c t , a r e s u f f i c i e n t t o
uphold t h e d e t e r m i n a t i o n of t h e D i s t r i c t C o u r t t h a t p r o p e r
venue f o r t h i s a c t i o n i s i n M u s s e l s h e l l County.
The o r d e r of t h e D i s t r i c t C o u r t i s a f f i r m e d .
W concur:
e /I
%A$. Chief J u s %Lu-c&
tice
Mr. J u s t i c e Gene B. Daly d i s s e n t i n g :
I d i s a g r e e w i t h t h e r e a s o n i n g of t h e m a j o r i t y a s i t
c o n c e r n s t h e " c o u n t y o f a c t i v i t y " and u s i n g t h e c a s e o f
Brown v . F i r s t F e d e r a l S a v i n g s & Loan A s s ' n . , supra, a s
authority.
The " t o r t e x c e p t i o n " i n s e c t i o n 93-2904, R.C.M. 1947,
now s e c t i o n 25-2-102 MCA, i n my v i e w , c l e a r l y d i d n o t i n t e n d
t o p e r m i t a f a l l from a r o o f t o b e a t t a c h e d t o a c o n t r a c t
a c t i o n f o r t h e p u r p o s e o f venue.