Attorney General ex rel. McRae v. Thompson

168 Mich. 511
CourtMichigan Supreme Court
DecidedFebruary 16, 1912
DocketCalendar No. 24,990; Calendar No. 24,985
StatusPublished
Cited by23 cases

This text of 168 Mich. 511 (Attorney General ex rel. McRae v. Thompson) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attorney General ex rel. McRae v. Thompson, 168 Mich. 511 (Mich. 1912).

Opinion

Steers, J.

These proceedings have been equitably consolidated by common consent and, by permission of the court, argued and submitted together. They involve the validity of certain proposed bond issues of the city of Detroit. Said proposed issues, delayed by and directly involved in this contention, are: Sewer bonds, $730,000; school bonds, $656,000; library bonds, $216,000; waterworks bonds, $250,000. They were authorized by popular vote, action of the city council and board of estimates, and all proceedings leading up to their issue have been cared for by skilled counsel and appear regular. It is not necessary to review those details here, as no question is raised against their validity except the general limit on the city’s indebtedness.

The case of Attorney General, ex rel. McRae, v. Thompson, was recently before this court (167 Mich. 507 [133 N. W. 532]). The information then averred that the bonds in question were valid, and certain of the defendants were publicly proclaiming their invalidity. It prayed that the court pass upon, and certify to the legality of, these bonds, and restrain defendants from further asserting to the contrary. Twelve propositions which are set out in the opinion referred to were propounded to the court for consideration. Answers were filed by three of the defendants asserting the validity of the bonds they represented and joining in the prayer that all questions touching the legal[514]*514ity of the budget and the bond issues be definitely determined. Other defendants demurred to the information “because it does not show a legal injury.” The trial court held it had “no jurisdiction to render an opinion upon the twelve questions asked ” and sustained the demurrer, dismissing the information. In the form the matter was then presented, the action of the trial court was sustained by this court; it being the opinion that the questions were purely academic, there being in the information “a mere statement of the proceedings taken to issue said bonds and the importance of a determination of their validity, without any averment of illegality in the proceedings or breach of any official duty.” Following this opinion, after the record was remanded, the information was amended, by permission of the court; the general demurrer being allowed to stand as originally filed, and the matter was again submitted to the court below. The amendment was in part as follows:

“To make this information intelligible and to invoke the jurisdiction, of the courhto declare said tax levy and bond issues legal or illegal, the attorney general, on the relation aforesaid, gives the court to understand and be informed that said proposed bond issues and each of them are excessive and illegal, including the water bonds prepared to be issued by the board of commissioners.
“(10) That the said bond issues, so far as they are found excessive and beyond the limits fixed by charter or law or are otherwise illegal, may be declared invalid, and that the city of Detroit, the common council, the city controller and the board of water commissioners may be enjoined from selling or in any way negotiating a sale of said bonds.”

The circuit court held most of the proposed bond issues to be illegal for the reason that they were in excess of the 2 per cent, limit of indebtedness fixed by law, and granted an injunction restraining their sale except in so far as they are now authorized to the amount of $120,000 found to be within the limit. From this relator appealed. In this appeal a brief has been filed and argument made in sup[515]*515port of the bonds proposed to be issued by the board of water commissioners.

In the meantime the Detroit library commission, the board of education, and the board of health of the city of Detroit, in separate suits, petitioned the circuit court of Wayne county for writs of mandamus to compel the respondent David E. Heineman, city controller, to advertise and sell their respective bonds, which had been authorized by the electors, common council, and board of estimates, under regular proceedings taken according to law; said respondent having declined to do so under advice obtained from the corporation counsel. So-called answers, amounting in effect to demurrers, admitting the facts but denying the legal conclusions, were filed. The three petitions were then by stipulation and order of the court merged and submitted together as one proceeding. The trial court again held the bond issues in excess of $120,000 illegal, for the reason that they would raise the bonded indebtedness of the city above the 2 per cent, limit. The proceedings were then removed to this court by writ of certiorari and the various entanglements which surround the proposed bond issues of the city of Detroit are now before this court. The vital question is whether or not the proposed issues swell the gross debt of the city of Detroit beyond the 2 per cent, limit based on the assessed valuation of its real and personal property to which it is restricted by the city charter and the so-called home rule” act of 1909.

In support of the legality of said issues, it has been urged that the limit was raised by Act No. 802 of the Local Acts of 1911 to 3 per cent., which is not exceeded by the proposed increase of indebtedness. The constitutionality of said Act No. 302 being in doubt, it is further urged, in support of the various issues by their respective representatives, that the board of education of the city of Detroit and the Detroit library commission are distinct and independent corporations, for educational purposes only, created by acts of the legislature under its general powers to maintain and enforce a free school system [516]*516throughout the State; that said acts are not part of the charter of the city in the usual and legal meaning of the term; and that therefore their bonds should not be included in computing the bonded indebtedness of the city for municipal purposes. This contention is relied upon by the board of health, which points out and urges that, if the school bonds and library bonds outstanding are not included in the gross indebtedness of the city, the 2 per cent, limit would ■ not be exceeded by all the issues proposed; also urging that the bonds of the board of health are for necessary improvements to preserve and promote the public health. On behalf of the board of water commissioners it is also asserted that it is an independent corporation, created by an act of the sovereign legislature of this State in its early history (1853); that its rights and duties are independent of municipal interference and well defined by the law creating the board, and subsequent amendments, which have been upheld in numerous decisions of this court. It is also pointed out that its authority to bond comes by direct legislation, distinct from the city charter, for which reason its indebtedness is not to be included in the restriction placed by the charter on the amount to which the city is limited.

The important questions before us are:

First, the constitutionality of Act No. 302, Local Acts of 1911.
Second, Are the library board, board of education, and board of water commissioners independent corporations, distinct in character from the municipal corporation of the city of Detroit to the extent that the 2 per cent, limit does not apply to their bonds ?

At the time of the adoption of the Constitution of 1909, the existing city charter of Detroit (section 7, chap. 11 [Act No.

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Bluebook (online)
168 Mich. 511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-general-ex-rel-mcrae-v-thompson-mich-1912.