LAURA DENVIR STITH, Judge.
The city of Lake Saint Louis appeals the trial court's dismissal of its petition for declaratory judgment that certain disputed property is within its boundaries and that the city of O'Fallon's attempted annexation of it is invalid. O'Fallon filed a motion to dismiss on the basis that Lake St. Louis had no authority to seek a declaratory judgment because the sole mechanism for determining whether its annexation of the disputed property was proper is to have the attorney general or prosecuting attorney of St. Charles County file a quo warranto action. The trial court granted O'Fallon's motion to dismiss.
Lake St. Louis appeals, arguing that a municipality itself has the right to bring a declaratory judgment to determine its boundaries rather than being forced solely to rely on the discretion of the attorney general and the county's prosecuting attorney as to whether to bring a quo warranto action on the municipality's behalf.
This Court agrees. While individuals are not authorized to bring a declaratory judgment action to determine a boundary dispute as to a municipality, this limitation does not apply to a suit brought by the affected municipality, school district or other public corporation itself. To the extent State ex inf. Sanders, ex rel. City of Lee's Summit v. City of Lake Lotawana, 220 S.W.3d 794 (Mo.App.2007), and State ex rel. Members of Bd. of Educ. of Everton R-III Sch. Dist. v. Members of Bd. of Educ. of Greenfield R-IV Sch. Dist., 572 S.W.2d 899 (Mo.App.1978), suggest to the contrary, they no longer should be followed. Accordingly, the judgment granting the motion to dismiss is reversed, and the case is remanded.
Lake St. Louis and O'Fallon are municipalities in St. Charles County. On March 26, 2009, Lake St. Louis filed a petition for declaratory judgment against O'Fallon in which Lake St. Louis alleged that, in 1982, it annexed certain property to the north of its prior boundary, making its northern boundary run along Interstate 70 in St. Charles County. The petition alleged that "O'Fallon disputes the northern boundary of Lake Saint Louis and claims to have subsequently annexed property, issued permits, and taken other actions within the boundary of Lake Saint Louis...."
On April 30, 2009, O'Fallon filed a motion to dismiss in lieu of filing an answer. The motion asserted that Lake St. Louis was not entitled to bring a declaratory judgment action to determine its boundaries and that, in any event, the statute of limitations to do so had expired. The trial court granted O'Fallon's motion to dismiss without stating on which ground it ruled. Following a decision by the Missouri Court of Appeals, Eastern District, this Court granted transfer. MO. CONST. ART. V, § 10.
"[A] motion to dismiss for failure to state a cause of action is solely a test of the adequacy of the plaintiff's petition." Reynolds v. Diamond Foods & Poultry, Inc., 79 S.W.3d 907, 909 (Mo. banc 2002). A court reviews the petition "in an almost academic manner, to determine if the facts alleged meet the elements of a recognized cause of action, or of a cause that might be adopted in that case." Nazeri v. Mo. Valley Coll., 860 S.W.2d 303, 306 (Mo. banc 1993). In so doing, a court takes a plaintiff's averments as true and liberally grants plaintiff all reasonable inferences. It will not weigh the credibility or persuasiveness of facts alleged. Id. Accord, Reynolds, 79 S.W.3d at 909.
An appellate court reviews a trial court's grant of a motion to dismiss de novo. Lynch v. Lynch, 260 S.W.3d 834, 836 (Mo. banc 2008). It will consider only the grounds raised in the motion to dismiss in reviewing the propriety of the trial court's dismissal of a petition, and, in so doing, it will not consider matters outside the pleadings. Brennan By and Through Brennan v. Curators of the Univ. of Mo., 942 S.W.2d 432, 434 (Mo.App.1997). Here, the merits of Lake St. Louis's declaratory judgment claims regarding its boundaries were not a ground of the motion to dismiss and, therefore, are not reached on this appeal. See Rule 55.27(a). This Court considers solely whether the grounds raised in the motion supported dismissal.
Lake St. Louis argues that the filing of a declaratory judgment action is an appropriate mechanism by which a municipality can resolve a boundary dispute. O'Fallon disagrees, arguing that Lake St. Louis ultimately is seeking to oust O'Fallon from the contested land and, therefore, the exclusive remedy is through a writ of quo warranto. As it is undisputed that only the attorney general or a prosecuting or circuit attorney can bring an action in quo warranto, Rule 98.02, O'Fallon argues that Lake St. Louis has no authority to seek or obtain the relief it sets out in its petition.
For the reasons noted below, while O'Fallon is correct that individuals are not permitted to bring declaratory judgment actions seeking to determine boundaries or to oust a municipal or other public corporation from disputed territory, municipalities, school districts and other public corporations are permitted to bring such actions.
Rule 98.02 provides that, "(a) Proceedings in quo warranto shall be by a civil
An action in quo warranto may be brought by the attorney general or prosecutor on behalf of the state directly or at the relation of another, Rule 98.02(b); Rule 98.04, including an individual who seeks to determine the legality of an annexation.
"A declaratory judgment provides guidance to the parties, declaring their rights and obligations or otherwise governing their relationship," Shipley v. Cates, 200 S.W.3d 529, 534 (Mo. banc 2006), and generally may be granted when a court is presented with:
Mo. Soybean Ass'n v. Mo. Clean Water Comm'n, 102 S.W.3d 10, 25 (Mo. banc 2003).
Individuals sometimes have sought to bypass the prohibition on an individual bringing a quo warranto action by seeking the same relief in a suit for an injunction or for declaratory judgment. Spiking Sch. Dist. No. 71, DeKalb Cnty. v. Purported "Enlarged Sch. Dist. R-II, DeKalb Cnty., Mo.", 362 Mo. 848, 245 S.W.2d 13, 15 (1952), provides a good example. Certain individual residents of a school district sought a declaratory judgment that a new and enlarged school district was invalidly formed and that their previous school districts continued to exist.
In approving dismissal of their petition, this Court stated that "a declaratory judgment action is not available to the individual plaintiffs who are residents, patrons and taxpayers of the reorganized district" because "they are only indirectly affected by the lack of de jur[e] existence of the reorganized district and the attempted action by them is in the nature of a collateral attack." Id. at 21. It prohibited such collateral attacks by individuals because individuals necessarily are only indirectly affected by whether a public or municipal corporation has a de jure existence. If
For these reasons, "[t]he law is settled that when a public body has, under color of authority, assumed to exercise the powers of a public corporation of a kind recognized by law, so as to become at le[a]st a de facto corporation, the validity of its organization can be challenged only by direct proceedings in quo warranto by the state through its officers designated in [section] 531.010, and cannot be challenged by individuals." State ex rel. Junior Coll. Dist. of Sedalia v. Barker, 418 S.W.2d 62, 65 (Mo. banc 1967). As a matter of public policy, suits by individuals are not permitted due to "the importance of stability and certainty in such matters, and the serious consequences which might follow if the existence of a public corporation could be called in question by persons who do not have an interest in the matter separate and distinct from that of the State itself." Id. at 65-66 (internal citations and quotations omitted). "[C]orporate franchises are grants of sovereignty only, and, if the state acquiesces in their usurpation, individuals will not be heard to complain." Id. (internal citations and quotations omitted).
Lake St. Louis does not disagree with the general rule that quo warranto offers the exclusive means of relief for individuals; they may not sue in their own right and may act as relators only in an action brought in the name of the state by the attorney general or county prosecutor. But, Lake St. Louis argues, this Court never has held that the sound reasoning underlying this rule applies when the dispute is between two municipalities or other public corporations concerning which one of them has the valid claim over a disputed area. In such cases, it suggests, a public corporation is the party directly affected by the territorial dispute. While the attorney general and prosecutor also may bring a suit in quo warranto on behalf of such a governmental entity, whether they choose to do so is within those officials' discretion. The governmental entity, therefore, as the party directly affected, should have the right instead to bring a declaratory judgment action in its own name to vindicate its directly affected interest in the office or territory.
This Court has recognized on at least two occasions that the question of whether a public school district can bring a declaratory judgment action to resolve a territorial dispute is not resolved by the cases holding that individuals are not authorized to bring such actions. In 1952, Spiking noted the general rule regarding individuals but then found that because the plaintiffs in the action before it were not actually existing school districts (they had been dissolved prior to suit being brought):
245 S.W.2d at 21. In 1967, while reaffirming the general rule that an individual is not authorized to bring a declaratory judgment action to challenge the validity of a district boundary and, instead, suit must be brought by the state in a quo warranto action, this Court similarly recognized that this holding was not dispositive of the question whether such a suit could be brought by the district itself, stating:
Barker, 418 S.W.2d at 65 n. 1.
Walker Reorganized Sch. Dist. R-4 v. Flint, one of the cases cited in the Barker footnote, specifically noted that Spiking had left "the door open" for declaratory judgment actions when "two school districts are claiming the same territory." 303 S.W.2d 200, 206 (Mo.App.1957). Walker walked through the door, holding that the public policy concerns behind prohibiting individuals from bringing an independent action had no application in suits involving public school districts. It held that because these municipal bodies' interests are affected directly by a dispute over their own boundaries, they should be permitted to bring a declaratory judgment action:
Id. at 205-06 (emphasis added).
O'Fallon nonetheless urges this Court to close the door left open in Spiking by holding that the prohibition on declaratory judgment actions by individuals also applies to school districts and other public corporations. In support, it cites State ex rel. Members of Bd. of Educ. of Everton R-III Sch. Dist. v. Members of Bd. of Educ. of Greenfield R-IV Sch. Dist., 572 S.W.2d 899 (Mo.App.1978), and State ex inf. Sanders, ex rel. City of Lee's Summit v. City of Lake Lotawana, 220 S.W.3d 794 (Mo.App.2007). This Court rejects that invitation.
Neither case involved a declaratory judgment action brought by one school district or municipality against another, however, nor did either offer any reasoning why such declaratory judgment suits would not be proper. Moreover, Dalton merely noted (as this Court reaffirms today) that a suit in quo warranto is "
Lake Lotawana, the other case involving a public corporation relied on by O'Fallon,
This Court finds Walker's reasoning more persuasive. To require a directly affected municipality or other similar public corporation to rely on a third party— the attorney general or a county prosecutor—to bring suit over its very boundaries would risk leaving it without a remedy if the attorney general and prosecutor exercise their discretion not to act. While this is appropriate where an individual litigant is involved, to avoid the multiplicity of suits that otherwise would ensue and to ensure that spurious claims are not asserted in an effort to adversely affect the public body, such reasoning does not apply to the municipality or other public corporation itself, as it has a direct and vital interest in determining its own boundaries.
To the extent Everton and Lake Lotawana hold otherwise, they no longer should be followed. While they are correct that a quo warranto action by the attorney general or prosecuting or circuit attorney at the relation of the public corporation is proper to determine a boundary dispute such as this under Rule 98.02, so too is a declaratory judgment action brought directly by the municipality or other public corporation itself.
The motion to dismiss filed below also raised statute of limitations and laches defenses. Because the court failed to state the reasons for dismissal, this Court is unable to determine whether the dismissal was based on those grounds or on the ground principally relied on, that a
Dismissal of Lake St. Louis's petition was unwarranted. The trial court's judgment is reversed, and the case is remanded.
All concur.