Oakland Cnty. v. State

325 Mich.App. 247

926 N.W.2d 11

OAKLAND COUNTY, Plaintiff-Appellant,

v.STATE of Michigan, Department of Licensing and Regulatory Affairs, and Michigan Indigent Defense Commission, Defendants-Appellees.

No. 341172

Court of Appeals of Michigan.

Submitted July 10, 2018, at Lansing.

Decided July 17, 2018, 9:00 a.m.

Keith J. Lerminiaux and Mary Ann Jerge for Oakland County.

Bill Schuette, Attorney General, Aaron D. Lindstrom, Solicitor General, B. Eric Restuccia, Chief Legal Counsel, and Bridget K. Smith, Assistant Attorney General, for the state of Michigan, the Department of Licensing and Regulatory Affairs, and the Michigan Indigent Defense Commission.

Before: Ronayne Krause, P.J., and Gleicher and Letica, JJ.

Per Curiam.

Oakland County objected to the Legislature’s amendment of an act creating the Michigan Indigent Defense Commission (the MIDC Act), giving authority to the executive branch, through the Department of Licensing and Regulatory Affairs (LARA), to set standards for attorneys appointed to represent indigent clients. The bulk of the county’s argument revolved around its claim that the MIDC Act, MCL 780.981 et seq., and the standards approved by LARA usurped the judiciary’s power to manage and control the court system and the legal profession. Although there is some overlap, the limited sharing of powers envisioned by the act does not offend the Separation of Powers Clause of Const. 1963, art. 3, § 2, and the county is not otherwise entitled to relief. We therefore affirm the Court of Claims’ summary dismissal of Oakland County’s suit.

I. BACKGROUND

In 2011, the Governor signed an executive order¹ establishing an advisory commission on the defense of indigent criminal defendants. Based on the commission’s report, the Legislature passed 2013 PA 93, the MIDC Act. The act created the MIDC and designated it as an autonomous entity within the judicial branch, tasked with proposing minimum standards for providing effective assistance of counsel for indigent criminal defendants.

On January 4, 2016, the MIDC submitted its initial set of four standards to the Michigan Supreme Court for its review. The Supreme Court conditionally approved these standards, "subject to and contingent on legislative revision of the MIDC Act to address provisions that the Court deem[ed] to be of uncertain constitutionality." AO No. 2016-2, 499 Mich. xcviii, xcviii-xcix (2016). Specifically, the Court was concerned that the creation of an "autonomous entity" within the judicial branch unconstitutionally usurped its exclusive authority "to exercise general supervisory control" over judicial-branch employees. Id. at xcix, citing MCL 780.985 and Const. 1963, art. 6, §§ 1, 4, and 7. The Court opined that several of the act’s provisions "might contain enforcement mechanisms" that usurp the Supreme Court’s control over the court system. AO 2016-2, 499 Mich. at xcix. See also Const. 1963, art. 6, § 4. Specifically, the Court expressed concern with the act’s definition of "indigent criminal defense system" (ICDS), which combined trial courts with nonjudicial local governments, and with provisions allowing the autonomous MIDC to "[d]evelop[ ] and oversee[ ] the implementation, enforcement, and modification of minimum standards, rules, and procedures to ensure that indigent criminal defense services providing effective assistance of counsel are consistently delivered to all indigent adults in this state," and "to assure compliance with the commission’s minimum standards, rules, and procedures." AO-2016-2, 499 Mich. at xcix, citing MCL 780.983(f) ; MCL 780.989(1)(a) and (b) (quotation marks omitted; alterations in original). Moreover, the Court interpreted certain provisions as "arguably allow[ing] the MIDC to regulate the legal profession," a power granted to the judiciary by Const. 1963, art. 6, § 5. AO 2016-2, 499 Mich. at c. The Court indicated that its conditional approval would be automatically withdrawn on December 31, 2016, if the Legislature did not act. AO 2016-2, 499 Mich. at c.

The Legislature thereafter amended the MIDC Act, effective January 4, 2017. 2016 PA 439. The Legislature removed the MIDC from the judicial branch and placed it within LARA, an executive-branch agency. MCL 780.985(1) ; MCL 780.983(b). The Legislature also revised the definition of an ICDS to mean only the local unit of government that funds a trial court (the funding unit), rather than the funding unit and the trial court. MCL 780.983(g). The amendments further provided that the minimum standards enacted under the MIDC Act shall not infringe the Supreme Court’s authority under Const. 1963, art. 6, §§ 4 and 5. MCL 780.985(3) ; MCL 780.991(3)(a).

State Court Administrator Milton L. Mack, Jr., subsequently advised the state’s chief judges that the act’s amendments "appear to address issues of uncertain constitutionality that were raised by the Court." However, Mack asserted, because the legislative amendments did not take effect by December 31, 2016, the Supreme Court’s conditional approval of the MIDC’s proposed standards had expired.

On May 22, 2017, LARA approved the MIDC’s proposed minimum standards for guaranteeing the delivery of indigent criminal defense (ICD) services (substantively, the same standards that had been conditionally approved by the Supreme Court). See MIDC, Minimum Standards for Indigent Criminal Defense Services (2017). Standard 1 provided minimum standards for continuing legal education (CLE) and attorney training. Standard 2 set standards for an attorney’s initial client interview. Standard 3 described standards for investigations and for certain expert-witness matters. Standard 4 provided minimum standards for defense counsel’s first appearance and for subsequent appearances at critical stages in the proceedings. The act required the ICDSs to submit plans to comply with the act and the standards by November 20, 2017, and gave the MIDC 60 days to review the plans.

MCL 780.993(3) and (4) ; MIDC, A Guide for Submission of Compliance Plans, Cost Analyses, and Local Share Calculations (the Guide) (Summer, 2017), p. 5. The MIDC published the Guide "to assist with the preparation of the cost analysis and compliance planning for delivering indigent criminal defense services." The Guide, p. 5. The Guide provided that the ICDSs must address "each standard individually" and offered "General Guidelines for Compliance Plans." Id. at 6, 8. The MIDC also published a Compliance Plan for Indigent Standards 1-4 (the Compliance Plan) (2017), containing further "instructions" and "guidelines" regarding the filing of a plan for compliance with the ICD standards.

II. THE LAWSUIT

Oakland County filed suit against the state of Michigan, LARA, and the MIDC, asserting constitutional challenges to the MIDC Act and the approved ICD standards. As the trial court summarized the complaint:

Count I alleges that the MIDC Act is "facially unconstitutional" under Const. 1963, art. 3, § 2 —the separation of powers clause—because "it empowers LARA to usurp the Michigan Supreme Court’s constitutional authority to regulate and enforce minimum qualifications and professional standards for attorneys who represent indigent criminal defendants." Count II alleges that both the MIDC Act and the approved standards ... are "facially unconstitutional" under Const. 1963, art. 6, § 5 because "they usurp the Michigan Supreme Court’s constitutional authority to promulgate rules governing practice and procedure in Michigan Courts." Count III sounds a similar refrain, with the exception being that it asserts the MIDC Act and the approved standards violate Const. 1963, art. 6, § 4. Lastly, Count IV alleges that the MIDC promulgated "mandatory rules and procedures" in violation of the [Administrative Procedures Act (APA), MCL 24.201 et seq. ]. The complaint sought declaratory relief and a stay of the enforcement of the approved standards.

In lieu of an answer, defendants sought summary disposition. Defendants denied any conflict between the act and standards and the Supreme Court’s constitutional authority. The county asserted that the standards do not regulate the practice and procedure of attorneys and trial courts; rather, the standards regulate the funding units who must pay for ICD services. The act prohibits any minimum standards infringing the Supreme Court’s authority, defendants continued. Likewise, the MIDC’s minimum standards regulate the funding unit, not the conduct and qualifications of attorneys, the practice of law, or the administration of justice by courts. Defendants argued that the Guide is not subject to the APA because it is not a mandatory rule. Defendants further contended that Oakland County’s challenge to possible future standards was not yet ripe.

In response to defendants’ motion and in its own cross-motion for summary disposition, the county contended that the act allows the MIDC to regulate the legal profession, a power granted to the judicial branch, in violation of the Separation of Powers Clause, that is Const. 1963, art. 3, § 2. The act and the LARA-approved minimum standards unconstitutionally allow an executive-branch entity to regulate practice and procedure in the courts, the county asserted. And overall, the act and the standards infringe the Supreme Court’s exclusive authority to supervise the administration of justice in all state courts under Const. 1963, art. 6, § 4. The county opined that Standard 4 impermissibly creates a new right to appointed counsel at arraignment. The county alleged conflicts between the Michigan Court Rules and the act and standards regarding indigency determinations and counsel appointments. Specifically, the county complained that the act takes indigency determinations away from the courts and places them with the funding units. The county argued that Standard 3 usurps the judiciary’s authority to set standards for the appointment of expert witnesses. Finally, the county contend that the guidelines promulgated by the MIDC are more than...