Schisler v. State

JAMES R. EYLER, J. Kenneth D. Schisler, individually and as Chairman of the Maryland Public Service Commission (PSC), and on behalf of all members of the PSC similarly situated, and the PSC, appellants, 1 filed a complaint in the Circuit Court for Baltimore City against the State of Maryland, an appellee, challenging, as unconstitutional, certain provisions of legislation enacted by the General Assembly in June, 2006. After the circuit court denied appellants’ request for preliminary injunctive relief, appellants appealed to the Court of Appeals, and the Court of Appeals determined that the challenged provisions violated the State Constitution and ordered the circuit court to enter a permanent injunction in favor of appellants. On remand, appellants filed an amended complaint, adding ⁷³⁶ Governor Robert L. Ehrlich, Jr., President of the Senate Thomas V. Mike Miller, Jr., and Speaker of the House of Delegates Michael E. Busch, Jr., additional appellees, and also added new claims, including a claim for attorney’s fees incurred in the litigation. Upon motion by appellees, the circuit court dismissed the amended complaint.

On appeal, appellants raise the sole issue of whether the circuit court erred in dismissing their amended complaint. We conclude that the addition of new claims and new defendants was barred by the law of the case doctrine and that the causes of action copied from the original complaint did not support an award of attorney’s fees. Thus, we shall affirm. Factual Background Procedural History Following this overview, we shall address relevant matters in greater detail.

On June 26, 2006, appellants filed a complaint against the State of Maryland seeking a declaratory judgment and temporary and permanent injunctive relief against enforcement of certain provisions of legislation enacted during a Special Session of the Maryland General Assembly. The legislation in question, Senate Bill 1 (“S.B. 1”), was enacted on June 23, 2006, in response to anticipated increased energy costs affecting Maryland citizens. Appellants alleged that certain provisions of S.B. 1 violated the Maryland Constitution, Maryland Declaration of Rights, and the United States Constitution. The challenged provisions of the legislation, sections 12 and 22, removed the Chairman and Commissioners of the PSC from office as of June 30, 2006, and provided for their replacement on or after July 1, 2006.

See 2006 (Special Session) Md. Laws ch. 5, §§ 12, 22. On the same day they filed their complaint, appellants filed a motion for a temporary restraining order and preliminary injunction. On June 28, the circuit court denied appellants’ motion for interim injunctive relief, and appellants noted a direct appeal to the Court of Appeals. ⁷³⁷ On July 7, the Court of Appeals heard argument and, that afternoon, issued an order enjoining enforcement of sections 12 and 22 of S.B. 1, pending further order of the Court. On September 14, 2006, the court issued a decision in appellants’ favor, holding that the challenged provisions violated separation of powers principles under the Maryland Declaration of Rights and Maryland Constitution.

Despite the fact that the appeal was from the denial of a preliminary injunction, the Court, presumably concluding that its decision required no further evidentiary proceedings, ordered the circuit court to issue a permanent injunction against enforcement of those provisions. On October 16, 2006, the Court issued its mandate. The Court reversed the decision by the circuit court and remanded the case with instructions to “render a declaratory judgment and permanent injunction consistent with this opinion.” On October 10, 2006, after the Court of Appeals issued its decision, appellants filed an amended complaint. Appellants added as defendants Governor Ehrlich, Senate President Miller, and House Speaker Busch, and also added new claims under state and federal law, including an express request for attorney’s fees.

On November 27, 2006, appellees moved to dismiss the amended complaint, and on January 27, 2007, the circuit court granted the motion. Appellants then appealed to this Court. Senate Bill 1 On June 14, 2006, the Maryland General Assembly convened a Special Session to address an anticipated 72% increase in energy rates by Baltimore Gas & Electric Company (BG & E). The result of that Special Session was S.B. 1.

On June 22, 2006, Governor Ehrlich vetoed the bill, but on June 23, 2006, the General Assembly overrode the veto by a three-fifths majority vote in both the House and Senate. S.B. 1 was an “emergency bill” and became immediately effective pursuant to article II, section 17(d) of the Maryland Constitution. S.B. 1 addressed the anticipated increase in energy rates, created processes by which rate increases could be studied, terminated ⁷³⁸ the terms of office of the existing Chairman and Commissioners on the PSC, and altered the criteria for appointment to the PSC The PSC is an independent unit in the Executive Branch of the state government with statutorily conferred duties and powers. See Maryland Code (1998, 2007 Supp.) §§ 2-101 and 2-112 of the Public Utility Companies Article.

Under the law as it existed prior to enactment of S.B. 1, the five Commissioners were appointed by the Governor, with the advice and consent of the Senate, to five year, staggered terms, beginning on July 1 of the year each was appointed. See Maryland Code (1998, 2007 Supp.) § 2-102 of the Public Utility Companies Article. The Governor designated one of the five Commissioners as Chairman, with the advice and consent of the Senate, and the Chairman served a five year term, beginning on July 1 of the year appointed. See Maryland Code (1998, 2007 Supp.) § 2-103 of the Public Utility Companies Article.

At the time of appellants’ suit, all five incumbent' Commissioners were duly appointed by the Governor and confirmed by the Senate. Pursuant to the terms of section 12 of S.B. 1, the term of office of the Chairman and each Commissioner of the PSC was to terminate on June 30, 2006, and on July 1, 2006, the Senate President and the House Speaker were to present two lists of names to the Governor, one list from, which the Governor would select a new Chairman, and a second list from which the Governor would select four new Commissioners. See 2006 (Special Session) Md. Laws ch. 5, § 12(l)-(2). If the Governor failed to appoint a new Chairman and new Commissioners by July 15, 2006, section 12 provided that the Senate President and the House Speaker would appoint members to the PSC See id. § 12(3)(i).

Section 12 of S.B. 1 expressly retained the “holdover” provisions in sections 2-102(d)(3) and 2-103(b)(2) of the Public Utility Companies Article, providing that the Chairman and Commissioners remain in their positions until a successor qualifies. Section 22 of S.B. 1 provided that if any provisions of the act were declared invalid, the provisions were severable. See ⁷³⁹ 2006 (Special Session) Md. Laws ch. 5, § 22(a). Section 22 provided specifically that if the provisions in section 12 were held invalid, then the terms of the Chairman and the Commissioners would be eliminated and they would serve at the pleasure of the Attorney General, who was authorized to terminate their service and appoint their successors.

Id. § 22(b). Section 22 further provided that the Attorney General was to appoint the new Chairman and Commissioners in accordance with the remaining provisions of section 12. Id. § 22(c). Allegations in Complaint On June 26, 2006, appellants filed a complaint for a declaratory judgment and injunctive relief to prevent implementation of sections 12 and 22 of S.B. 1.

In their complaint, appellants claimed sections 12 and 22 of S.B. 1 infringed on the Governor’s power to remove civil officers for incompetency or misconduct under Article II, section 15 of the Maryland Constitution, and violated appellants’ due process rights under Article 24 of the Maryland Declaration of Rights. Appellants also claimed the removal provisions of S.B. 1 constituted an unlawful bill of attainder under Article I, section 10 of the United States Constitution. The complaint did not contain a claim based on a violation of 42 U.S.C. § 1983 . The complaint did not contain an express claim for attorney’s fees but did contain a claim for “costs and such other and further relief as the nature of this case may require.” Court of Appeals Opinion On September 14, 2006, the Court of Appeals reversed the circuit court’s denial of appellants’ motion for a temporary restraining order and preliminary injunction. 2 In a plurality opinion authored by Judge Dale R. Cathell, joined by Chief Judge Robert M. Bell, Judge Clayton Greene, Jr., and in part, ⁷⁴⁰ Judge Alan M. Wilner, the Court concluded that sections 12 and 22(b) and (c) of S.B. 1 violated (1) Article 8 of the Maryland Declaration of Rights, regarding separation of powers among the legislative, executive, and judicial branches of government; (2) Article II, section 1 of the Maryland Constitution, regarding the Governor’s power to supervise executive branch employees; (3) Article II, section 9, regarding the Governor’s power to execute the laws; and, (4) Article II, section 15, regarding the Governor’s power to remove appointed civil officers in the executive branch of government.

See Schisler v. State, 394 Md. 519, 602-03 , 907 A.2d 175 (2006). The Court did not address whether S.B. 1 violated the United States Constitution. The Court produced three other opinions. In a concurring opinion, Judge Alan M. Wilner concluded that the challenged provisions of S.B. 1 violated Article 8 of the Maryland Declaration of Rights, and Article II, sections 1 and 9 of the Maryland Constitution, although not section 15.

See Schisler, 394 Md. at 604-06 , 907 A.2d 175 . In a concurring and dissenting opinion, Judge Glenn T. Harrell Jr., joined by Judge Irma S. Raker, concluded that the challenged provisions of S.B. 1 violated Article 8 of the Maryland Declaration of Rights, but not any provision of the Maryland Constitution. See id. at 613-14 , 907 A.2d 175 . In a dissenting opinion, Judge Lynne A. Battaglia concluded that the circuit court’s denial of a temporary restraining order was not appealable, the members of the PSC were not “civil officers” for purposes of Article II, section 15 of the Maryland Constitution and the challenged provisions of S.B. 1 did not violate the Maryland Declaration of Rights or the Maryland Constitution.

See id. at 631-32 , 907 A.2d 175 . None of the concurring or dissenting judges discussed and, thus, did not conclude that S.B. 1 violated the United States Constitution. Amended Complaint Subsequent to issuance of the Court of Appeals’ opinions, appellants filed an amended complaint. Appellants added new substantive claims and three new defendants, identified above. ⁷⁴¹ In count I of the complaint, appellants sought a declaratory judgment that the legislation in question violated Article II, section 15 of the Maryland Constitution (separation of powers), Article 24 of the Maryland Declaration of Rights (due process), and Article I, section 10 of the United States Constitution (bill of attainder).

Count I remained the same in the amended complaint. In count II of the complaint, appellants sought injunctive relief, based on the constitutional violations alleged in Count I. Appellants requested the court to issue a temporary and permanent injunction and also requested the award of “costs and such and further relief as the nature of this case may require.” Count II of the amended complaint was essentially the same except that appellants added an express claim for “attorneys’ fees.” In the amended complaint, appellants added a count III and a count IV. In count III, appellants asserted a 42 U.S.C. § 1983 action for violation of their federal civil rights. In count IV, appellants asserted a violation of Articles 16 and 25 of the Maryland Declaration of Rights, regarding the prohibition against cruel and unusual punishment, and Article 24, regarding their due process rights.

In counts III and IV, appellants sought “reasonable attorney’s fees, costs, and any further damages or relief to which Plaintiffs may be entitled.” Appellees’ Motion to Dismiss On November 27, 2006, appellees moved to dismiss or, in the alternative, strike the amended complaint. Appellees made the following arguments in support of their motion: (1) all of the equitable claims were moot and thus there was no civil right to enforce under 42 U.S.C. § 1983 ; (2) the amendment was untimely and barred by Rule 8-604(d); (3) the amended complaint failed to state a cause of action in counts I and II because the matter had been determined; only the State was named, the State was not a “person” under § 1983, and thus could not be liable; (4) the amended complaint failed to state a cause of action in count III, because the State was not a “person” under § 1983; § 1983 did not apply to state ⁷⁴² constitutional violations; the factual allegations were insufficient regarding Governor Ehrlich, Senate President Miller, and House Speaker Busch; and each official was immune from suit; and (5) appellant failed to state a cause of action in count IV because of failure to give notice under the Maryland Tort Claims Act; insufficient factual allegations to state a constitutional claim against Governor Ehrlich, Senate President Miller, or House Speaker Busch; and a state constitutional violation does not support an award of attorney’s fees. Circuit Court’s Rulings On November 29, 2006, after remand, the circuit court entered a declaratory judgment and permanent injunction in accordance with the Court of Appeals’ mandate. The circuit court declared (1) sections 12 and 22(b) and (c) of S.B. 1 unconstitutional, null, and void, (2) permanently enjoined the State from enforcing those provisions of the bill, and (3) ordered the State to pay appellants’ costs, pursuant to the Court of Appeals mandate, totaling $1,959.60.

On January 22, 2007, the circuit court heard arguments on appellees’ motion to dismiss appellants’ amended complaint. At argument, counsel for appellants stated that the only damages they were seeking in the amended complaint were costs and attorney’s fees incurred in litigation. On January 27, 2007, the circuit court granted appellees’ motion to dismiss the amended complaint, on all the bases asserted by appellees in their motion to dismiss. Appellants appealed the dismissal of their amended complaint to this Court.

Discussion Standard of Review Under Maryland Rule 2-322(b)(2), a defendant may seek dismissal of a complaint if the complaint fails “to state a claim upon which relief can be granted.” The standard for reviewing the grant of a motion to dismiss is whether the trial court was legally correct. Fioretti v. Md. State Bd. of Dental Exam’rs, 351 Md. 66, 71 , 716 A.2d 258 (1998) (citations omit ⁷⁴³ ted). In reviewing the grant of a motion to dismiss, “we must determine whether the complaint, on its face, discloses a legally sufficient cause of action.” Id. at 72 , 716 A.2d 258 (citations omitted). In reviewing the complaint, we must “presume the truth of all well-pleaded facts in the complaint, along with any reasonable inferences derived therefrom.” Id.

(citations omitted). The above applies to a motion to dismiss an amended complaint. The Merits Appellants contend the amended complaint was timely. They rely on case law stating that amendments are liberally allowed under Rule 2-341, and that there was no showing of prejudice to appellees. 3 In response, appellees contend that appellants already received the relief they sought, any new theories are duplicative and moot or barred by Rule 8-604 and the law of the case doctrine, and appellees are immune from suit.

Appellants disagree. The law of the case doctrine is a rule of appellate procedure. See Scott, v. State, 379 Md. 170, 183 , 840 A.2d 715 (2004) (citations omitted). Under the doctrine, a “ruling of an appellate court upon a question becomes the ‘law of the case’ and is binding on the courts and litigants in further proceedings in the same case.” Acting Dir., Dep’t of Forests & Parks v. Walker, 39 Md.App. 298, 301 , 385 A.2d 806 (1978), aff'd, 284 Md. 357 , 396 A.2d 262 (1979).

The function of the law of the case doctrine is to prevent piecemeal litigation. See Reier v. State Dep’t of Assessments & Taxation, 397 Md. 2, 21 , 915 ⁷⁴⁴ A.2d 970 (2007) (citations omitted). The Court of Appeals defined the doctrine in Fidelity-Baltimore National Bank & Trust Co. v. John Hancock Mutual Life Insurance Co., 217 Md. 367 , 142 A.2d 796 (1958), explaining: [Litigants] cannot prosecute successive