Pangelinan v. Commonwealth
Pangelinan v. Commonwealth
Opinion of the Court
OPINION
FACTS
In July, 1985, the CNMI held its second Constitutional Convention. Pangelinan was one of 24 elected by the voters to participate as a delegate to the Convention. Constitutional Amendment 9 was one of 44 amendments adopted by the delegates which was later approved by the people of the CNMI in a general election and certified by the Board of Elections.
Amendment 9 placed a $2.8 million ceiling on the Legislature for operations and activities. Subsequently, in order to implement this amendment the Legislature enacted a bill
Pangelinan filed suit to enjoin the government from expending the sum allocated by P.L. 5-9 for legislators’ salaries. She initially sought a temporary restraining order contending that the $2.8 million budget ceiling on operations and activities of the Legislature already included legislators' salaries; that the $540,000 allocated by P.L. 5-9 constituted an excess over and above that authorized for the Legislature by Constitutional Amendment No. 9. The trial court denied Pangelinan's request for a temporary restraining order, but upon motion was granted a preliminary injunction.
Pangelinan moved for summary judgment pursuant to Commonwealth Trial Court Civil Procedure Rule 56. Following the hearing, the trial court determined sua aponte that summary judgment was inappropriate since Pangelinan was seeking injunctive relief and Rule 56 does not encompass injunctive orders. The trial court determined that a permanent injunction was the proper mode of relief. It also determined that a hearing was not necessary. The trial court permanently enjoined the Legislature from spending more than $2.8 million for operations and activities, including legislators' salaries, in any fiscal
There are three issues presented in this appeal:
1. WHETHER PANGELINAN HAD STANDING AS A TAXPAYER TO CHALLENGE LEGISLATIVE SPENDING.
2. WHETHER THE TRIAL COURT CORRECTLY RULED AS A MATTER OF LAW THAT THE CONSTITUTIONAL CEILING.ON THE LEGISLATIVE BUDGET INCLUDED LEGISLATORS’ SALARIES.
3. WHETHER THE TRIAL COURT ERRED WHEN IT TRANSFORMED THE PRELIMINARY INJUNCTION INTO A PERMANENT INJUNCTION WITHOUT AN EVIDENTIARY HEARING.
ANALYSIS
I. Standing
The Commonwealth Trial Court and this Court (in both the trirl and appellate divisions) have" consistently supported the principle of taxpayer standing in suits to prevent the government from abusing its authority. See. Lizama v. Rios. CV 85-0011, Decision and Order (D.N.M.I. 1986); Manglona v. Camacho. DCA 82-9009, Opinion, (D.N.M.I. 1983)(aff’g CTC 80-177); and Romisher v. MPLC, CTC 83-401, Order (Commonwealth Trial Court 1983).
Still, the Legislature contends that the trial court erred when it found that Pangelinan had standing to enjoin legislative spending. It cites Taisacan v. Camacho. 660 F.2d 411 (9th Cir. 1981), in support of its proposition that absent direct injury a taxpayer cannot sue to enjoin governmental activities. Reliance on Taisacan is misplaced. Taisacan dealt with a
Pangelinan is challenging the expenditure of Commonwealth funds in contravention of a Commonwealth constitutional amendment. Lizama, Manglona, and Romisher all stand for the proposition that standing is recognized in the Commonwealth in this situation. Further support for this stance can be found in Reynolds v. Wade, 249 F.2d 73 (9th Cir. 1957), cited in Lizama and Manglona.
In Reynolds. a taxpayer brought suit to enjoin Alaskan
As this Court pointed out in Lizama. this reasoning is even more compelling where there are less than 30,000 people in the entire .Commonwealth - far fewer of whom pay taxes.
The Legislature attempts to negate Pangelinan’s claim of standing by including an affidavit from the Director of Finance which indicatés that the $540,000 allocated for legislators’ salaries does not increase individual taxes. This argument completely misses the point. It also reflects the. Legislature's attitude towards its role in disbursing public
Though the Legislature may be correct in its assertion that individual taxes are not increased as a result of this allocation, this fact is not controlling. Money taken from the general fund to pay legislators' salaries in excess of the constitutional mandate cannot be utilized for other constitutionally or statutorily permitted purposes. Ultimately, there is a harm suffered by Pangelinan and others similarly situated.
Pangelinan also asserts that she. has standing based on Constitutional Amendment 31. This amendment provides that a taxpayer can bring an action "to enjoin the expenditure of public
Pangelinan was one of 24 delegates elected to the Second Constitutional Convention. She asserted standing based on this fact. The trial court agreed with Pangelinan. The appellants cite this as error. The Court also declines to address this issue since there is standing based on case precedent.
II. The Constitutionality of Public Law 5-9
The crux of this case centers on the proper interpretation of Amendment 9. It states:
Section _. Budget Ceiling. There shall be a ceiling on the budget of the legislature.
a) Appropriations, or obligations and expenditures, for the operations and activities of the legislature may not exceed two million eight hundred thousand dollars in any fiscal year. This ceiling on the legislative budget shall be divided equally between the Senate and the House of Representatives.
b) Obligations and expenditures for the operations and activities of the legislature for the period October 1 through the second Monday in January of a fiscal year' in which there is a regular general election, may not exceed seven hundred thousand dollars or the spending authority otherwise available by law, whichever is less. This ceiling shall apply to the various offices and activities in the same proportions as the annual spending authority provided by law.
Methodist Hospital is distinguishable from the facts herein. It dealt with the expansion of legislative authority. Prior to 1968, the California Constitution prohibited the Legislature from creating any debt or liability in excess of $300,000 without a bond issue, passed by the Legislature and approved by a majority of the voters. In the 1968 California general election, the voters amended the Constitution by adding §21.5 to Article XIII of the' Constitution. This amendment authorized the Legislature to "insure or guarantee" loans for the construction of public health facilities. The amendment specifically provided that it was an exception to the $300,000 limit on indebtedness. Subsequently, the Legislature passed a series of statutes to implement this amendment. One of these statutes authorized the issuance of debentures to insure the payment of delinquent loans.
The Director argued that the words "insure or guarantee" did not include debentures. The California Supreme Court pointed out initially that the California Constitution is a limitation or restriction on the Legislature. Therefore, when a party challenged an act of the Legislature, the courts looked to see if the Constitution prohibited the act. California courts interpret these restrictions strictly. The court reasoned that a constitutional amendment ■ removing these restrictions and limitations should, in cases of doubt, be construed liberally. The court concluded that since §21.5 removed the prior limitation on the power of the Legislature to incur debt, the interpretation of how to go about incurring the debt would be left to the Legislature. This, the Court concluded, created a presumption in favor of the Legislature's interpretation of the constitutional amendment. Methodist Hospital. 97 Cal.Rptr. at 5.
Amendment 9 to the CNMI Constitution restricted the Legislature's authority. It prohibited the Legislature from spending more than $2.8 million in any fiscal year. This is precisely the obverse of the situation in Methodist Hospital.
California case law may be persuasive but is not controlling authority in the CNMI. But even assuming arguendo that Methodist Hospital was controlling in this case, the Legislature must still fail. Any presumption created by law in favor of the legislative interpretation of a constitutional provision is rebuttable at best. This is particularly so here, in light of the fact that P.L. 5-9 is tied directly to the legislators' pocketbooks. As the Legislature conceded in oral argument, (though now it is only arguing that legislators' salaries are not included in operations and activities) nothing would prevent it in the future from proposing a similar ] restrictive interpretation which, for example, could exclude legislators' expenses and place that in the same category as legislators' salaries.
There are few principles so ingrained in American jurisprudence than that set down by the United States Supreme Court in Marbury v. Madison. 1 Cranch 137, 2 L.Ed. 60 (1803), where it held that the judiciary is the ultimate interpreter of
The trial court .determined that the plain and commonly understood meaning of legislative budget ceilings for "operations
Ill. The Trial Court's Ruling Without a Hearing
The trial court initially granted Pangelinan's motion for a preliminary injunction preventing the CNMI from expending funds in excess of the $2.8 million ceiling on the Legislature. Pangelinan moved for summary judgment. Following the hearing on Pangelinan's motion for summary judgment, the trial court determined sua sponte that a permanent injunction was appropriate. The Legislature objects to the court's procedure and to its ultimate conclusion.
A preliminary injunction can be transposed into a permanent injunction without an evidentiary hearing where there exists no triable issue of fact. See, e.g., United States v. McGee, 714 F.2d 607, 613 (6th Cir. 1983). There were no issues of material fact before the trial court. It did not err when it granted the permanent injunction.
Pangelinan' presented to the Court Amendment 9. The amendment stated that the Legislature's budget could not constitutionally exceed $2.8 million in any fiscal year. She also presented to the Court two public laws, P.L. 5-1 and 5-9.
The Legislature originally filed an amicus curiae brief in the trial court and later moved to and was allowed to intervene.
/ —'Pangelinan introduced Committee Recommendation 24 entitled "Report to the Convention by the Committee on Finance and Other Matters." This report was compiled by a committee which assisted the constitutional convention delegates by performing research and compiling information on the proposed amendments. Though the court admitted it over objection, it ruled that it ascribed little or no significance to the report and that the same ruling would have been made without it.
Reference
- Full Case Name
- MARIA T. PANGELINAN v. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS and FIFTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE
- Status
- Published