Source: https://law.justia.com/cases/kansas/supreme-court/1980/50-361-1.html
Timestamp: 2019-09-22 04:17:11
Document Index: 6896872

Matched Legal Cases: ['Art. 11', '§ 1', '§ 2', '§ 1', '§ 1', '§ 716', '§ 732', '§ 1', '§ 1']

Board of Greenwood County Comm'rs v. Nadel :: 1980 :: Kansas Supreme Court Decisions :: Kansas Case Law :: Kansas Law :: US Law :: Justia
Justia › US Law › Case Law › Kansas Case Law › Kansas Supreme Court Decisions › 1980 › Board of Greenwood County Comm'rs v. Nadel
228 Kan. 469 (1980)
618 P.2d 778
HAROLD VAUGHN, RAYMOND D. FLUMMER and LEE HENDERSON, as the BOARD OF COUNTY COMMISSIONERS OF GREENWOOD COUNTY, KANSAS, MARILYN WILSON, as the COUNTY CLERK-ASSESSOR of said County, and VIRGINIA L. CONNELL, as the COUNTY TREASURER of said County, Appellants and Cross-Appellees, v. I. NADEL and HERBERT GUSSMAN, a Partnership, d/b/a NADEL AND GUSSMAN; the BOARD OF TAX APPEALS OF THE STATE OF KANSAS; and JAMES COBLER, as the DIRECTOR OF ACCOUNTS AND REPORTS, Appellees and Cross-Appellants.
Bernis G. Terry, of Lowe, Terry & Roberts, of Olathe, argued the cause and was on the brief for the appellants.
Robert J. O'Connor, of Hershberger, Patterson, Jones & Roth, of Wichita, was on the brief for appellees Nadel and Gussman.
1. STATUTES Constitutionality Presumption Construction by Courts. We start with the proposition that the constitutionality of a statute is presumed; that all doubts must be resolved in favor of its validity, and before the statute may be stricken, it must clearly appear the statute violates the Constitution. It is the court's duty to uphold the statute under attack, if possible, rather than defeat it. If there is any reasonable way a statute may be construed constitutionally permissible, that should be done.
2. SAME Vested Rights Pending Litigation Effect. There can be no vested right in an existing law which precludes its change or repeal as applied to pending litigation.
3. SAME Vested Rights Action by Appellate Court or Expiration of Period Allowed for Appeal. A vested right is a right so fixed that it is not dependent on any future act, contingency or decision to make it more secure, and a defendant in an action does not acquire a vested right in a judgment dismissing an appeal, but only an inchoate right which will become vested upon the happening of an affirmance by the appellate court or by the expiration of the period allowed for appeal.
4. CONSTITUTIONAL LAW Due Process Elements. The essential elements of due process of law are notice and an opportunity to be heard and to defend in an orderly proceeding adapted to the nature of the case.
5. LEGISLATURE Separation of Powers Authority to Establish Procedural Prerequisites over Administrative Appeals. The legislature has full authority to establish procedural prerequisites to the exercise of jurisdiction by the district courts over administrative appeals.
6. STATUTES Prospective and Retrospective Operation Vested Rights. A statute will operate prospectively rather than retrospectively unless its language clearly indicates that the legislature intended the latter, and retrospective application will not be given where vested rights will be impaired.
7. TAXATION Assessment Uniformity Constitutional Requirements. This court has repeatedly held that Art. 11, § 1 of the Constitution of the State of Kansas requires the legislature to provide for uniformity in the basis of assessment as well as in the rate of taxation. Uniformity in taxing implies equality in the burden of taxation.
*470 8. KANSAS CONSTITUTION Political Privileges versus Property Rights. The constitutional provision relied upon (Kansas Bill of Rights § 2) has been definitely construed as referring solely to political privileges and not to those relating to property rights.
9. TAXATION Jurisdiction of District Courts to Hear Appeals from Board of Tax Appeals Separation of Powers Not Violated Constitutionality of Statute. There is no constitutional impediment to L. 1980, ch. 236, § 1 (f) as adopted by the legislature of the State of Kansas so far as the separation of powers doctrine is concerned.
Our original unpublished opinion was based on Board of Johnson County Comm'rs v. Ameq, Inc., 227 Kan. 93, 605 P.2d 119 (1980). In Ameq this court determined that when the State Board of Tax Appeals enters an order favorable to the taxpayer in a proceeding brought to the Board seeking recovery of taxes paid under protest, the county taxing officials had been given no right *471 of appeal by the legislature in K.S.A. 74-2426, 60-2101(d), or 79-2005.
The background facts of this case, although not absolutely necessary to a determination of issues, will be helpful in understanding the questions presented. The defendants-appellees are I. Nadel and Herbert Gussman, a partnership doing business as Nadel and Gussman. The partnership paid its ad valorem taxes for 1975 on oil properties in Greenwood County under protest. It then filed application for refund of taxes paid under protest pursuant to K.S.A. 79-2005 and appealed to the Board. The Board made and entered its final order on the application for refund in favor of the taxpayer, reduced the 1975 appraised valuations on these oil properties by 20%, and ordered Greenwood County to refund the excess taxes paid. The Greenwood County officials perfected an appeal from said order to the District Court of Shawnee County under the provisions of K.S.A. 60-2101(a) [Corrick], now K.S.A. 1979 Supp. 60-2101(d). They contended:
*472 (6) that said purported findings of fact and conclusions of law failed to support the said purported order; and
"(f) The district courts of this state and its appellate courts shall have jurisdiction to hear and determine any appeals, or purported appeals, which may have been dismissed after January 1, 1980, but before the effective date of this act, from final orders of the board of tax appeals concerning tax protests, tax grievances, tax exemption statutes or original proceedings before the board under the provisions of K.S.A. 1979 Supp. 60-2101, subsections (a), (b) and (d), or any of their statutory predecessors, under the provisions of K.S.A. 1979 Supp. 74-2426, or any of its statutory predecessors, or under the provisions of K.S.A. 79-2005, or any of its statutory predecessors. Such jurisdiction shall be exercised by the courts in all cases where such appeals, or purported appeals, have not been finally disposed of either (1) upon the merits thereof or, (2) for lack of substantial compliance with the requirements for appeal under the statutes mentioned above or (3) upon some grounds other than the dismissal thereof on the basis of the purported lack of any appellate jurisdiction over such appeal. Any appeal or purported appeal from such final order of the board under any of the statutes mentioned above which may have been dismissed, or which may hereafter be dismissed, by a district court or appellate court on the basis that the statutes mentioned above, or any of them, did not apply to such appeal, shall be reinstated before such court immediately upon the request of any party to such appeal, and the courts shall thereafter exercise further appellate jurisdiction over such appeal in the same manner and to the same extent as if such appeal had not been dismissed." L. 1980, ch. 236, § 1 (f).
In examining these questions we start with the proposition that the constitutionality of a statute is presumed; that all doubts must be resolved in favor of its validity, and before the statute may be stricken, it must clearly appear the statute violates the Constitution. It is the court's duty to uphold the statute under attack, if *473 possible, rather than defeat it. If there is any reasonable way a statute may be construed constitutionally permissible, that should be done. State ex rel. Stephan v. Lane, 228 Kan. 379, Syl. ¶ 1, 614 P.2d 987 (1980).
Rights are vested when the right to enjoyment, present or prospective, has become the property of some particular person or persons as a present interest. On the other hand, a mere expectancy of future benefit, or a contingent interest in property founded on anticipated continuance of existing laws, does not *474 constitute a vested right. Brown v. City of Topeka, 146 Kan. at 981. See also Bain v. Boykin, 180 Va. 259, 23 S.E.2d 127 (1942). A vested right is a right so fixed that it is not dependent on any future act, contingency or decision to make it more secure, and a defendant in an action does not acquire a vested right in a judgment dismissing an appeal, but only an inchoate right which will become vested upon the happening of an affirmance by the appellate court or by the expiration of the period allowed for appeal.
K.S.A. 60-2106(c) provides that this court may by rule provide for post-decision motions (motions for rehearing) and by rule determine when a decision of an appellate court shall become final. Under Supreme Court Rule No. 7.06(a) above, when a rehearing is granted such order suspends the effect of the original decision until the matter is decided on rehearing.
In Jones v. Garrett, 192 Kan. 109, 386 P.2d 194 (1963), the point is made that there are no vested rights in any particular remedy. *475 Procedure is the mode or proceeding by which a legal right is enforced. It is that which regulates the formal steps in an action or other proceeding. It is the order in which an action or prosecution is conducted. In Jones it is said:
"The right to appeal, in the strict sense, depends entirely upon statute or express constitutional provision, and this is true of judicial review in the broader sense where the question is one of compliance with the statutory method of review. The legislature acting within its constitutional powers may prescribe the procedures and conditions under which, and the court in which, judicial review of the action of the administrative agency may be had. The right of review is governed by the particular provisions of the act involved and is limited to its terms. The procedure prescribed by the statute must be followed in seeking the review especially those particulars which are jurisdictional or mandatory; in some instances it is declared that the statute must be strictly followed." 2 Am.Jur.2d, Administrative Law § 716, p. 618. Emphasis supplied. "[I]t can hardly be doubted that the legislature, acting within its constitutional powers, may prescribe the procedures and conditions under which, and the court in which, judicial review of administrative orders may be had." 2 Am.Jur.2d, Administrative Law § 732, p. 633.
The legislature has full authority to establish procedural prerequisites to the exercise of jurisdiction by the district courts over *476 administrative appeals. Jenkins v. Newman Memorial County Hospital, 212 Kan. 92, 95, 510 P.2d 132 (1973); Thompson v. Amis, 208 Kan. 658, 661, 493 P.2d 1259, cert. denied 409 U.S. 847 (1972).
*477 "A statute will operate prospectively rather than retrospectively unless its language clearly indicates that the legislature intended the latter, and retrospective application will not be given where vested rights will be impaired." 220 Kan. 565.
At the present time H.B. 3228 merely permits review of the Board's order, which order directed a reduction in the appraised valuations of defendants' property. No prior review on the merits has been had. If review on the merits results in a reversal of the Board's order that merely indicates the defendants' assessments and rates were uniform and equal as originally set by the county officials. If the order is approved on review it will mean the 20% reduction in appraised valuations ordered by the Board is necessary *478 to place defendant's taxes on an equal and uniform basis with their neighbors. The argument lacks merit.
The final point Does this act of the Kansas legislature (H.B. 3228), in providing for an appeal in this case, amount to a violation of the doctrine of separation of powers?
*479 See State, ex rel., v. Bennett, 219 Kan. 285, 547 P.2d 786 (1976).
Wyandotte County Comm'rs v. General Securities Corp., 157 Kan. 64, 138 P.2d 479 (1943), provides a typical example of a violation of the separation of powers doctrine. There the power which the legislature attempted to exercise was a judicial power the interpretation of an existing statute. Under the facts of that case the legislature attempted by legislative act to direct the judiciary in the interpretation of an existing statute. The court stated:
"`The determination of the true state and meaning of the existing law is not a legislative function, but is a judicial function ... and the legislature cannot declare what the law was in the past.'" 157 Kan. at 76.
In United States v. Sioux Nation of Indians, 448 U.S. 371, 65 L. Ed. 2d 844, 100 S. Ct. 2716 (1980), the United States Supreme Court goes far in upholding a federal statute which had the effect of requiring a court to hear a case involving Indian rights, after the case had been dismissed on the grounds of res judicata. The court found that Congress in no way attempted to dictate the outcome of the Court of Claims' review of the case on the merits. The Court of Claims was completely free to reaffirm its 1942 judgment previously reached some years before.
*480 The words of the high court in that case appear to be of particular interest in our present case. In Sioux Nation of Indians, the court said:
"There are two objects that might be raised to the constitutionality of this amendment, each framed in terms of the doctrine of separation of powers. The first would be that Congress impermissibly has disturbed the finality of a judicial decree by rendering the Court of Claims' earlier judgments in this case mere advisory opinions.... "The second objection would be that Congress overstepped its bounds by granting the Court of Claims jurisdiction to decide the merits of the Black Hills claim, while prescribing a rule for decision that left the Court no adjudicatory function to perform." 65 L. Ed. 2d at 861. "When Congress enacted the amendment directing the Court of Claims to review the merits of the Black Hills claim, it neither brought into question the finality of that court's earlier judgments, nor interfered with that Court's judicial function in deciding the merits of the claim. When the Sioux returned to the Court of Claims following passage of the amendment, they were there in pursuit of judicial enforcement of a new legal right. Congress had not `reversed' the Court of Claims' holding that the claim was barred by res judicata, nor, for that matter, had it reviewed the 1942 decision rejecting the Sioux' claim on the merits. As Congress explicitly recognized, it only was providing a forum so that a new judicial review of the Black Hills claim could take place. This review was to be based on the facts found by the Court of Claims after reviewing all the evidence, and an application of generally controlling legal principles to those facts. For these reasons, Congress was not reviewing the merits of the Court of Claims' decisions, and did not interfere with the finality of its judgments." 65 L. Ed. 2d at 870.
In view of what has been said we find no constitutional impediment to L. 1980, ch. 236, § 1 (f) as adopted by the legislature of the State of Kansas so far as the separation of powers doctrine is concerned. It is procedural in nature. The present case was pending on a motion for rehearing when the law became effective. However, even though the case had not been pending, the intention of the legislature is clearly expressed so as to apply the act retroactively. This is proper in those cases where procedural changes are adopted and no vested rights are affected. No attempt has been made by the legislature to require any particular judicial decision on the past controversy. This court holds that L. 1980, ch. 236, § 1 (f) as passed by the Kansas legislature is valid and is not constitutionally impermissible for any of the reasons urged on this court.