Board of Directors of Modesto Irrigation District v. Tregea

26 P. 237, 88 Cal. 334, 1891 Cal. LEXIS 696
CourtCalifornia Supreme Court
DecidedMarch 19, 1891
DocketNo. 13988
StatusPublished
Cited by60 cases

This text of 26 P. 237 (Board of Directors of Modesto Irrigation District v. Tregea) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Directors of Modesto Irrigation District v. Tregea, 26 P. 237, 88 Cal. 334, 1891 Cal. LEXIS 696 (Cal. 1891).

Opinion

Beatty, C. J.

This is a special proceeding instituted in pursuance of the act of March 16, 1889 (Stats. 1889, p. 212), for the purpose of obtaining judicial confirmation of the validity of certain bonds of the respondent which it has ordered to be issued and sold.

The act referred to is supplemental to the act entitled “An act to provide for the organization and government of irrigation districts, and to provide for the acquisition of water and other property,‘and for the distribution of water thereby for irrigation purposes,” approved March 7, 1887, and commonly known as the Wright law. (Stats. 1887, p. 29.)

The original act, as its title imports, provides for the organization of irrigation districts, and for the adoption and carrying out of plans for the irrigation of the lands embraced therein. Among other things so provided for is the issuance and sale of the bonds of the several districts. Before any such bonds can be issued or sold, the directors of the district are required to submit the proposition to a vote of the electors at a special election, and to order and give notice of such election in a manner particularly prescribed.

[338]*338As the validity of the bonds when issued depends upon the regularity of the proceedings of the board, and upon the ratification of the proposition by a majority of the electors, it is matter of common knowledge that investors have been unwilling to take them at their par value while all the facts affecting their validity remain the subject of question and dispute.

To meet this inconvenience, — for the security of investors, and to enable the irrigation districts to dispose of their bonds on advantageous terms, — the supplemental act, under which this proceeding was instituted, ■was passed.

It provides that the board of directors of any irrigation district may “commence a special proceeding in and by which the proceedings of said board and of said district providing for and authorizing the issue and sale of the bonds of said district, whether said bonds, or any of them, have or have not been sold, may be judicially examined, approved, and. confirmed.”

The proceding is commenced by the filing of a petition in the superior court of the county in which the lands of the district, or some portion thereof, are situate, praying the confirmation of the proceedings of the directors; whereupon the court is required to make and publish an order stating the prayer of the petition and fixing a time and place for the hearing.

Any person interested may demur to or answer the allegations of the petition; and the issues of law and fact are tried and determined by the court as in other cases, under the ordinary rules of practice.

The court has power upon the hearing to examine and determine the legality and validity of the organization of the district and all matters affecting the legality and validity of the bonds and the order for their sale, and has power to confirm the proceedings in whole orín part, according to the facts.

In this case the proceeding in the superior court re-[339]*339suited in a judgment affirming the regularity of the organization of the respondent as an irrigation district, and the legality and validity of its orders for the issuance of its bonds to the amount of eight hundred thousand dollars, and for the sale of four hundred thousand dollars thereof.

The defendant, a resident and property owner of the district, who contested the validity of the respondent’s proceedings, appeals from the judgment of the superior court, and from an order denying his motion for a new trial.

Numerous errors are assigned and argued, but they are all involved in, and may be disposed of by,a consideration of a few general propositions.

1. It is contended that there was no sufficient notice of this proceeding to give the superior court jurisdiction to render a judgment binding upon the lands of the district and their owners. There seems to be a claim under this head, though it is not particularly insisted upon, that the notice prescribed by the statute is not sufficient.

The object of the proceeding is of course to compel every person interested in the district, and whose property is to be bound for the payment of its debts, to come into court, and within the time limited present, and submit to judicial investigation, any and all objections he may have to the regularity of the organization of the district, and all other matters affecting the validity of the bonds, so that it may be finally and conclusively determined by a judgment, which neither he nor his successors in interest can thereafter question, whether such bonds are legal and valid or not.

Notice must therefore be given to all persons so interested. But it need not be a personal notice. It not only may be, but to secure the ends of the statute it must be, a general notice by publication in some form. It is unnecessary to take up time in the discussion of this [340]*340question, which has long since ceased to be an open one in this state. Without referring to many earlier and later decisions bearing more or less directly upon the point, it is sufficient to say that the statute and proceedings under review in Lent v. Tillson, 72 Cal. 404, were in all essential respects similar as to their objects and the substance of their provisions to the statutes and proceedings in question here, and the notice of this proceeding prescribed by the statute of 1889 is, for every purpose, as ample and beneficial as the notice to property owners which was in that case held sufficient to give validity to the proceedings by which the lands of the local assessment district were subjected to a lien for the payment of the Dupont Street bonds. The provisions of the supplemental act in regard to this matter are found in section 3, Statutes of 1889, page 212, which reads as follows: “The court shall fix the time for the hearing of said petition, and shall order the clerk of the court to give and publish a. notice of the filing of said petition. The notice shall be given and published in the same manner, and for the same length of time, that a notice of a special election provided for by said act, to determine whether the bonds of said district shall be issued, is required to be given and published. The notice shall state the time and place fixed for the hearing of the petition and the prayer of the petition, and that any person interested in the organization of said district, or in the proceedings for the issue or sale of said bonds, may, on or before the day fixed for the hearing of said petition, demur to or answer said petition. The petition may be referred to and described in said notice as the petition of the board of directors of-irrigation district (giving its name), praying that the proceedings for the issue and sale of the bonds of said district may be examined, approved, and confirmed by said court.”

But it is further contended that even conceding the sufficiency of the notice prescribed by the statute, the [341]*341notice actually given of this proceeding did not comply with the statute.

In order to a proper understanding of the several objections falling under this head, it is necessary to state generally the facts concerning the organization of the respondent as an irrigation district and its subsequent proceedings.

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Bluebook (online)
26 P. 237, 88 Cal. 334, 1891 Cal. LEXIS 696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-directors-of-modesto-irrigation-district-v-tregea-cal-1891.