Opinion ID: 887118
Heading Depth: 1
Heading Rank: 6

Heading: Issue 3: Whether the District Court abused its discretion when it awarded costs to HPR.

Text: ¶ 25 McDermott argues that the District Court misinterpreted the statutory requirements of § 25-10-501, MCA, governing the contents of a bill of costs and improperly concluded that HPR's Bill of Costs complies therewith. McDermott contends that Randall Nelson, who signed the verification attesting that the costs enumerated in the memorandum were correct and necessarily incurred, was not actually sworn and did not attest to his personal knowledge; rather, Mr. Nelson signed a document which purported to present Mr. Dahle's knowledge and belief and which indicated that Mr. Dahle had been duly sworn. Moreover, he contends, the notary does not attest that Mr. Dahle is the person on behalf of whom Mr. Nelson executed this sworn statement. Although conceding that the verification of the Bill of Costs was signed in the absence of Mr. Dahle by his partner Mr. Nelson, HPR retorts that the verification in the Bill of Costs complies with § 25-10-501, MCA, in every material respect and the Bill of Costs should be granted in its entirety. ¶ 26 In order to recover costs, the party who receives a favorable judgment must serve the adverse party within five days with: a memorandum of the items of his costs and necessary disbursements in the action or proceeding, which memorandum must be verified by the oath of the party, his attorney or agent, or the clerk of his attorney, stating that to the best of his knowledge and belief the items are correct and that the disbursements have been necessarily incurred in the action or proceeding. Section 25-10-501, MCA (emphasis added). By statute, a notary who takes a verification upon oath must determine, either from personal knowledge or from satisfactory evidence, that the person appearing before the officer and making the verification is the person whose true signature is on the statement verified. Section 1-5-603(2), MCA (2003) (emphasis added). Thus, the statute requires the personal physical presence of the person making the verified statement. Consistent with this, we have defined an affidavit as a written statement, under oath, sworn to or affirmed by the person making it before some person who has authority to administer an oath or affirmation.... The maker must have personal knowledge of the information contained in the statement and must swear to its validity.  Mountain States Resources, Inc. v. Ehlert (1981), 195 Mont. 496, 503, 636 P.2d 868, 872 (emphasis added) (citations and quotations omitted); see also § 26-1-1001, MCA. Mr. Nelson was present to subscribe to and swear to the statement before the notary who administered the oath, as indicated by his signature on the verification. Accordingly, Mr. Nelson was the maker of the statement contained in the verification. Yet, the statement contained in the verification gives no indication that Mr. Nelson has personal knowledge of the information contained in the statement and does not state that Mr. Nelson swore to its validity. Rather, the verification indicates that it was subscribed and sworn to by Mr. Dahle. Mr. Dahle, however, was not actually present to be sworn by the notary, subscribe to his statement or sign the verification. The affidavit verifying the Bill of Costs is improper as a matter of formality. ¶ 27 This formally flawed affidavit is functionally defective as well. The Legislature imposed the requirement that bills of costs be verified upon oath to ensure that these documents reliably reflect actual costs incurred. The person who swears to the accuracy of the enumerated costs may be held accountable if it is later shown that they have knowingly overstated their costs. See § 45-7-202, MCA (indicating that such conduct constitutes false swearing punishable by fine and/or imprisonment). To swear an absent person who does not actually sign the statement is functionally equivalent to having an unsworn statement. The person who has purportedly subscribed to and sworn to the truth of the statement did not in fact make or sign the statement. Likewise, no documentation exists that the person who actually made the statement was under oath when he attested to its truth by signing it. Nobody could be prosecuted for false swearing, the consequences of which render sworn statements reliable. This is the functional defect with the verification in this case. There is no indication that Mr. Nelson made a sworn statement and there is no indication that Mr. Dahle attested to the validity of the statement which he purportedly made, as he did not sign it, and being absent, could not have been properly sworn. This fatal deficiency renders the Bill of Costs invalid. Accordingly, the District Court abused its discretion when it awarded costs to HPR. The court's order awarding costs must be vacated. ¶ 28 We affirm with respect to issues one and two and reverse with respect to issue three and remand for entry of an order consistent with this Opinion. JOHN WARNER, W. WILLIAM LEAPHART, BRIAN MORRIS and JIM RICE, JJ., concur.