Balding v. Eich

7 P.2d 1073, 120 Cal. App. 491, 1932 Cal. App. LEXIS 23
CourtCalifornia Court of Appeal
DecidedFebruary 6, 1932
DocketDocket No. 4612.
StatusPublished
Cited by2 cases

This text of 7 P.2d 1073 (Balding v. Eich) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balding v. Eich, 7 P.2d 1073, 120 Cal. App. 491, 1932 Cal. App. LEXIS 23 (Cal. Ct. App. 1932).

Opinion

PLUMMER, J.

This cause is before us upon an application of the above-named petitioners praying that a writ of mandate be issued from this court directed to Harvey D. Eich, as treasurer of the Bond Fund of Reclamation District No. 784, located in the county of Yuba, ordering and commanding proceedings to be taken by him in the collection of funds from the land owners in said reclamation district to pay interest and principal due on bonds of said district.

The petition shows that during all the times mentioned herein, Reclamation District No. 784 was a duly organized and existing district under the laws of the state of California, situate in the county of Yuba, and including within its exterior boundaries some 14,000 acres of land. The petition further sets forth that on or about the first day of November, 1920, an assessment was duly levied upon the lands of said district in the manner provided by law, for the total sum of $897,427.39. This sum remaining unpaid the board of trustees of said reclamation district, pursuant to the law regulating reclamation districts, proceeded to issue bonds, dating such bonds on the first day of January, 1921, and thereafter, of such bonds, the principal sum of $834,000 were sold.

The petition further shows that the defendant in this action is the treasurer of the county of Yuba, and trustee of the Bond Fund of Reclamation District No. 784. The bonds just referred to as issued and sold bore interest at the rate of six per cent per annum, payable semi-annually, to wit, on the first day of January of each year and on the first day of July of each year. Of said issue, bonds in the sum of $97,000 were to become due and did become due on the first day of January, 1930. This issue of bonds was known, and is referred to herein,' as “Series No. 1”. Thereafter, bonds in the principal sum of $90,000 of the issue referred to became due on the first day of January, 1931, being known as “Series No. 2”. Issue of said bonds known as “Series No. 3”, in the sum of $90,000, were to become *493 due, and will become due, on the first day of January of each succeeding year.

The petition further sets forth that Julia Adams Balding is the owner and holder of bonds in the sum of $10,000 of series No. 1; bonds in the principal sum of $2,000 of series No. 2; and that E. M. Price is the owner and holder of a bond in the sum of $1,000 of series No. 3.

It is further alleged that the interest on the bonds owned by Julia Adams Balding, of series No. 1, has been paid up to the first day of July, 1929, and no further, and that neither said principal of said bonds, or any part thereof, nor interest subsequent to the first day of July, 1929, has been paid. Interest on the bonds owned by the petitioner, Julia Adams Balding, known as series No. 2, has been paid up to the first day of July, 1929, and no further; that nothing has been paid on the principal sum of any of the bonds owned by the petitioners herein; that on the bond owned by E. M. Price, interest has been paid up to July 1, 1929, but no further.

It is further alleged that each and all of said bonds are fully due and payable, and after the same became due were presented to the respondent for payment, and payment refused.

The petition further sets forth that the respondent, pursuant to the law governing such proceedings, prior to the first day of October, 1929, estimated the amount of money necessary to be raised to pay the interest on the total bonds issued and outstanding, as above set forth, and also the principal sum thereof maturing on January 1, 1930, adding thereto fifteen per cent to cover possible delinquencies, and caused notice thereof to be given as provided by law, the various items aggregating the total sum called for by said respondent being set forth in the petition.

It is further set forth in the petition that the respondent prior to the first day of October, 1930, estimated the amount of money necessary to be raised to pay the interest on the total bonds issued and outstanding as above set forth, save and except the bonds maturing under series No. 1, maturing on January 1, 1931, with the additional sum of fifteen per cent to cover possible delinquencies, and caused notice to be published in a newspaper of general circulation as required by law.

*494 It is further set forth in the petition that thereafter, and on or about the first day of October, 1931, the respondent again estimated the amount of money necessary to be raised to pay interest on bonds outstanding, except bonds of series Nos. 1 and 2, theretofore matured, and also the principal sum of the bonds maturing January 1, 1932, adding thereto, as required by statute, fifteen per cent to cover possible delinquencies, and thereafter published notice thereof in accordance with law.

It further appears from the petition that in the making of various estimates of the moneys necessary to pay the maturing bonds and the interest upon the outstanding bonds, as hereinbefore referred to, the respondent erred in adding to his estimates the costs and expenses of publishing the notices referred to, and that proceedings have been taken and had in the Superior Court of Tuba County by certain land owners whose lands were subject to assessment, contesting the validity of the calls hereinbefore referred to, and that judgments have been entered to the effect that the calls referred to are and were invalid by reason of the errors in the estimates, and that the sale of lands thereafter had by reason of the failure of land owners to pay their assessments under the calls referred to herein, are ineffective.

It further appears that while a few of the land owners owning lands in said reclamation district have paid the assessment levied upon their lands, a large number have allowed the assessments to go delinquent, and by reason of the fact that the estimates, calls and sales on account of delinquencies, are each and all ineffective for the reasons stated, nothing is being paid, and nothing is being collected • by the respondent as trustee of the bond fund of said district, nor is any action being taken by him to enforce payment, or to make a valid sale of the lands and premises situated within the exterior boundaries of said district and subject to such payments on account of delinquencies in making such payments.

It is further set forth that the respondent declines to take further action, or to take any action toward making a valid sale of the lands and premises within said reclamation district upon which assessments are or may become delinquent; likewise, said respondent declines to make any further estimate of the amounts necessary to be raised to *495 pay the principal and interest due on said bonds, and that will become due on the first day of July, 1932, unless required so to do by the order of this court.

In addition to what we have stated the petitioners ask a decree of this court directing the respondent to proceed to estimate, according to law, the amount that will be required to pay the principal and interest due on said issue of bonds as and of the date of July 1, 1932, and thereafter proceed to make valid sale of all and singular the lands and premises upon which there may be delinquencies in making payment.

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Cite This Page — Counsel Stack

Bluebook (online)
7 P.2d 1073, 120 Cal. App. 491, 1932 Cal. App. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balding-v-eich-calctapp-1932.