Bethel v. Mount Anthony Union High School District

Annotate this Case
Bethel v. Mount Anthony Union High School District (2001-276); 173 Vt. 633;
795 A.2d 1215

[Filed Mar-12-2002]

[Motion for Reargument Denied 16-Apr-2002]


                                 ENTRY ORDER

                      SUPREME COURT DOCKET NO. 2001-276

                             JANUARY TERM, 2002


Michael Bethel	                       }	APPEALED FROM:
                                       }
                                       }
     v.	                               }	Bennington Superior Court
                                       }	
Mount Anthony Union	               }	 
High School District	               }
                                       }	DOCKET NO. 120-3-01 Bncv

                                                Trial Judge: John P. Wesley  

             In the above-entitled cause, the Clerk will enter:


       Appellant, Michael Bethel, sought a declaratory judgment in superior
  court, brought pursuant  to 12 V.S.A. § 4711, to determine the validity of
  a 1998 amendment to an agreement which  established the Mount Anthony Union
  High School District.  Appellee, the Mount Anthony Union  High School
  District, filed a motion to dismiss, pursuant to V.R.C.P. 12(b), premised
  on a claim that  the Appellant's complaint was time-barred.  In a
  subsequent motion for summary judgment,  Appellant asked the superior court
  to declare the amendments invalid.  The court below granted the  Appellee's
  motion to dismiss, and Appellant appeals.  We affirm.

       In 1962, the Bennington, North Bennington, Pownal, Shaftsbury, and
  Woodford School  Districts agreed to form the Mount Anthony Union High
  School District (MAU District) pursuant to  16 V.S.A. § 701.  The agreement
  authorized the MAU District to operate schools for the students in  each of
  the member districts, grades seven through twelve.  On March 2, 1998, an
  amendment  proposing to include grade six within the MAU District's
  authority was presented to the voters of  each member district.  The vote
  was conducted by Australian ballot and each member district's votes  were
  tallied separately.  The tallies revealed that a majority of the total
  voters supported expansion;  however, the majority of voters in the Pownal
  and Woodford districts opposed expansion.  As a  result of the tabulated
  votes, the MAU District announced that the amendment had been approved  and
  then proceeded with plans to construct a new middle school designed to
  accommodate grades six  through eight.  On August 22, 2000, the MAU
  District obtained voter approval for a $20 million  construction bond for a
  new middle school.  

       Appellant filed a petition for declaratory judgment on March 23, 2001,
  more than three years  after the amendment certification, disputing the
  validity of the amendment to the union school  district agreement. 
  Appellant argued that the amendment to the union agreement was void because
  it  was not ratified by a majority of the voters within each of the five
  respective member districts as 

 

  required by 16 V.S.A. § 706n(a) if the proposed amendment concerns the
  method of allocating  capital and operating expenses of the union.  The MAU
  District in turn filed a Rule 12(b) motion to  dismiss on March 30, 2001,
  claiming that the Appellant's complaint was not timely filed pursuant to 
  16 V.S.A. § 552, which establishes a six month statute of limitations for
  commencing actions that  challenge the formation or existence of a union
  school district.  In the alternative, the MAU District  argued that
  Appellant's complaint was a challenge pursuant to V.R.C.P. 75, which
  requires that such  complaint be made thirty days after notice of any
  action of which review is sought, and, therefore,  Appellant's complaint
  was time-barred.  

       Appellant countered that Rule 75 was not applicable, or, if
  applicable, that the facts in this case  presented a special situation
  where the six year limitation for general civil claims, 12 V.S.A. § 511, 
  would apply rather than the thirty day limitation under Rule 75.  Appellant
  did not address the  District's claims under 16 V.S.A. § 552 at the trial
  court level.  On appeal, Appellant contends that  the section does not
  apply.

       The purpose of a Rule 12(b)(6) motion is "to test the law of a claim,
  not the facts which  support it."  Levinsky v. Diamond, 140 Vt. 595, 600,
  442 A.2d 1277, 1280 (1982) (quoting Niece v.  Sears, Roebuck & Co., 293 F. Supp. 792, 794 (N.D. Okl. 1968), overruled on other grounds by  Muzzy v.
  State, 155 Vt. 279, 583 A.2d 82 (1990).  Thus, when considering a Rule
  12(b)(6) motion,  "[t]he Court's attention . . . is . . . directed toward
  determining whether the bare allegations of the  complaint constitute a
  statement of a claim under V.R.C.P. 8(a)."  Id.  Since averments of time
  and  place are material for testing the sufficiency of a complaint,
  defenses based on a failure to comply  with the applicable statute of
  limitations are properly raised in a motion to dismiss.  Fortier v. 
  Byrnes, 165 Vt. 189, 193, 678 A.2d 890, 892 (1996).   

       A motion to dismiss for failure to state a claim upon which relief can
  be granted should not be  granted unless it is beyond doubt "that there
  exist no facts or circumstances that would entitle the  plaintiff to
  relief."  Amiot v. Ames, 166 Vt. 288, 291, 693 A.2d 675, 677 (1997).  When
  reviewing  the disposition of a Rule 12(b)(6) motion, this Court assumes
  that all well pleaded factual allegations  in the complaint are true, as
  well as all reasonable inferences that may be derived therefrom.   Richards
  v. Town of Norwich, 169 Vt. 44, 48, 726 A.2d 81, 85 (1999).  Using this
  standard, we  affirm the decision of the trial court. 

       The District argues that the Appellant's claim is time-barred due to
  the six month statute of  limitations for commencing actions challenging
  the formation of a union school district, or the  legality or validity of
  bonds issued by any school district found in § 552 of Title 16.  This Court 
  agrees and holds that 16 V.S.A. § 552 governs the issue in the instant
  case.  Section 552 reads:

    No action shall be brought directly or indirectly attacking,
    questioning or  in any manner contesting the legality of the
    formation, or the existence as a  body corporate and politic of
    any union school district created pursuant to  chapter 11 of this
    title, after six months from the date of recording in the  office
    of the secretary of state of the certificate of the commissioner of
     
 

    education designating such district . . .; nor shall any action be
    brought  directly or indirectly attacking, questioning or in any
    manner contesting the  legality or validity of bonds, issued or
    unissued, voted by any school  district, after six months from the
    date upon which voters in any such  school district met pursuant
    to warning and voted affirmatively to issue  bonds to defray the
    cost of school improvements.  This section shall be  liberally
    construed to effect the legislative purpose to validate and make 
    certain the legal existence of all school districts in this state
    and the  validity of bonds issued by school districts, and to bar
    every right to  question the existence of a school district or the
    validity of a bond voted by  it, in any manner, and to bar every
    remedy therefor notwithstanding any  defects or irregularities,
    jurisdictional or otherwise, after the expiration of  the six
    month period. (emphasis added).

       In cases of statutory construction, our obligation is to effectuate
  the intent of the legislature.   Brennan v. Town of Colchester, 169 Vt.
  175, 177, 730 A.2d 601, 603 (1999).  We construe a statute  consistent with
  its purpose, subject matter, effects and consequences, and the reason and
  spirit of the  law.  In re Spring Brook Farm Found., Inc., 164 Vt. 282,
  287, 671 A.2d 315, 318 (1995).  We avoid  construing statutory language in
  a way that produces an irrational result.  State v. Quinn, 165 Vt.  136,
  140, 675 A.2d 1336, 1338 (1996).  

       While § 552 does not specifically apply to subsequent amendments to
  union school district  agreements, the language of the statute should be
  broadly read to effect a legislative desire for  stability of both the
  existence of union school districts and the legality and validity of bonds
  issued  by school districts.  The section's language does not limit its
  coverage only to initial formations of  union school districts; indeed, its
  language covers both the formation and the existence of the school 
  district, which, liberally construed, includes amendments to an already
  existing body politic.  We  find it would be inconsistent with the express
  legislative purpose of § 552 to construe the section to  prohibit attacks
  on the original formation of a union school district after the expiration
  of the six  month time limitation but to allow for attacks on their
  expansion and continued existence.   Consistent with the statutory
  construction principles outlined above, we hold that the time limitation 
  of six months expressed in § 552 governs amendments to union school
  district formation  agreements, as well as the original agreements
  themselves.

       It is apparent from other provisions in Title 16, of which § 552 is a
  part, that the legislature is  expressly concerned with the formation of
  union school districts, their initial operation, and the  certainty of
  their continued existence.  See Galkin v. Town of Chester, 168 Vt. 82, 87,
  716 A.2d 25,  29 (1998) (explaining that specific sections of statutes are
  read in context and entire scheme read in  pari materia).  For example, 16
  V.S.A. § 721a(d) provides that a vote of withdrawal after a union  school
  district has become a body politic as provided in § 706g, but less than one
  year after that date,  shall be null and void.  In Appelget v. Baird, 126
  Vt. 503, 508, 236 A.2d 671, 674 (1967), this Court

 

  found a town's attempt to withdraw from a district within one year to be a
  nullity under this  section (FN1) and recognized that "[i]t is the peculiar
  nature of a union school district's beginnings  that there are always other
  towns or districts simultaneously involved, whose rights, duties and 
  obligations are. . . at stake.  With such an intertwining of interests, the
  unrestricted application of the  general right to reconsider may create an
  impossibly confused situation . . . ."  The limitations of §  721a(d) on
  the general right to reconsideration of the vote and this Court's
  recognition of the  complex nature of a school district's formation
  emphasize the importance of giving effect to the  legislative purpose
  outlined in § 552, of validating and making certain the legal existence of
  all  school districts in this state.

       Section 552 also expresses a legislative desire to make certain the
  validity and legality of  bonds issued by school districts.  The express
  legislative protection for the fiscal stability of school  districts found
  in § 552 is also apparent in other sections of Titles 16 and 17 and in our
  past  decisions.  For example, in Santi v. Roxbury School District, 165 Vt.
  476, 476, 685 A.2d 301, 301  (1996), this Court held that town voters were
  not entitled to a new reconsideration vote on the 1995-96 school budget
  under 16 V.S.A. § 711e, which sets forth the procedure for when a school
  district  elects to have its budget determined by Australian ballot.  In
  denying the voter's request and holding  that 17 V.S.A. § 2661(c) (FN2)
  prevented further re-votes without approval of the legislative body of  the
  district, this Court recognized the necessary tension between "the
  democratic principles  supported by allowing reconsideration and the need
  for finality if the district is to deliver the  educational services upon
  which its families depend."  Id. at 480, 685 A.2d  at 304.  We described a 
  school district as a "living organism that must open and run its schools
  irrespective of the fiscal  indecision of its electorate."  Id. at 481, 685 A.2d  at 304.  This recognition of the dependence of  families on school
  districts and the need for districts, as "living organisms," to run despite
  fiscal  indecision, further supports our interpretation of § 552 and its
  application to the 1998 amendment.

       It may be that the Appellant could argue that the amendment to add a
  sixth grade to the union  school agreement ultimately concerned the "method
  of allocating capital and operating expenses of  the union," and thus would
  require that the amendment be adopted by each of the respective member 
  districts by a vote of a majority of the qualified voters of the districts
  voting on the question, see 16  V.S.A. § 706n, but that challenge is made
  too late. 

 


       Appellant's attempt to undo the amendment to the district agreement,
  filed more than three  years after its certification, and more than six
  months after the $20 million bond approval, is  untimely under 16 V.S.A. §
  552.

       Affirmed. 



                                       BY THE COURT:



                                       _______________________________________
                                       Jeffrey L. Amestoy, Chief Justice

                                       _______________________________________
                                       James L. Morse, Associate Justice

                                       _______________________________________
                                       Denise R. Johnson, Associate Justice

                                       _______________________________________
                                       Marilyn S. Skoglund, Associate Justice



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                                  Footnotes


FN1.  The statute in effect when Appelget v. Baird was decided, 16 V.S.A. §
  612(a), was repealed  in 1967 and replaced by 16 V.S.A. § 721(a).  16
  V.S.A. § 612(a) differs only slightly from 16 V.S.A.  § 721(a).

FN2.  17 V.S.A. § 2661(c) provides that a question voted on shall not be
  presented for  reconsideration or rescission at more than one subsequent
  meeting within the succeeding twelve  months except with the approval of
  the legislative body.



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