Breathitt County Board of Education v. First National Bank

188 S.W. 770, 171 Ky. 708, 1916 Ky. LEXIS 415
Court of Appeals of Kentucky·Decided October 25, 1916·Published

Opinion

Opinion op the Court by

William: Rogers Clay, Commissioner'

Affirming.

Early in the year 1910, Mattie Patton sold and conveyed to the. Breathitt County Board of Education a tract of land located in the city of Jackson. The consideration was $1,000.00 cash and three notes for $500.00 each, pay[710] able one, two and three years from date. All of these notes were paid by the County Board of Education, with the exception of the last note due three years from date, which was assigned for a valuable consideration to the First National Bank of Jackson. After the purchase of the lot a graded school district, known as Jackson Graded Common School District No. 1, covering- territory embracing the lot in question, was regularly organized according to law. The Board of Trustees of this district took possession of the lot in question and erected thereon a commodious building, and since that time has been conducting a graded school therein.

This suit was brought by the First National Bank of Jackson to recover on the note assigned to it and enforce its vendor’s lien. Both the County Board of Education and the Board of Trustees of Jackson Graded Common School District No. 1 were made parties defendant.

The Breathitt County Board of Education filed an answer, counter-claim and cross-petition in three paragraphs. In the first paragraph it admitted the allegations of the petition. In the second paragraph it pleaded that subsequent to the purchase of the lot in question and before the first note matured, the Jackson Graded Common School District No. 1, of Breathitt County, was regularly organized. Thereupon it delivered to said district possession of the lot in question. Said district then erected valuable improvements upon said lot and has since been maintaining thereon a graded common school. Since taking possession of said lot the note sued on and all other obligations with reference to the purchase of said lot became, by operation of law, the obligations of said graded common school district. By paragraph 3 the County Board of Education further pleaded that after the delivery of the property in question to' the Board of Trustees of Jackson Graded Common School District No. 1, as it was its duty to do, the obligation of the county board became the obligation of the Jackson Graded Common School District No. 1, and that said district thereupon became bound and liable to the County Board of Education for the purchase price of said lot. It further prayed that it be adjudged a lien against the Jackson Graded Common School District No. 1 for the sum of $1,000.00, with interest from March 8th, 1910, and the [711] further sum. of $500.00, with interest from the............day of.............................., until paid. To this answer, counter-claim and cross-petition a demurrer was sustained. Thereupon an amended answer, counter-claim and cross-petition was filed by the County Board of Education, pleading in substance that at the time of the organization of the Jackson Graded Common School District No. 1, and at the time of answering, the County Board of Education was the owner in fee simple of the lot in question; that it never made any order consenting to deliver possession of the property to the J ackson Graded Common School District No. 1; that when said district took possession of said lot and erected the improvements thereon, the County Board of Education was indebted to its vendor in the sum of $1,500.00, evidenced by three promissory notes of $500.00 each; that when said district took possession of the lot it did so under a verbal agreement with the county judge, of Breathitt County, by which it agreed and promised to pay the remainder of the purchase price due on the lot; that at the time the county judge made such verbal agreement, he did so on the advice and with the belief that his consent was necessary to give the Board of Trustees of said graded school district the right to use said property. It is further pleaded that said graded district had never paid any of such notes or any part of them, but that the answering defendant had been forced to pay and had fully paid off the first two of said notes, and that it has a lien on the lot in question for the two notes paid off by it amounting to $1,000.00, with six per cent, interest from March 8th, 1910. It is further alleged that the answering defendant never consented, by order or otherwise, to . turn over the lot to its co-defendant, except insofar as it might be bound by the acts of the county judge of Breathitt County. The amended pleading concludes with the prayer that plaintiff’s lien be enforced, that said property be sold to satisfy the note sued on, and that the answering defendant’s demand for $1,000.00 with six per cent, interest from March 8th, 1910, until paid1 be granted; that if this cannot be done, it be adjudged the owner of said lot and be given possession of same. To this pleading a demurrer was sustained and the counter-claim and cross-petition dismissed. The Breathitt County Board of Education appeals.

"Whatever may be the rights of the County Board' of Education and the Board of Trustees of Jackson Graded [712] Common School District No. 1 as between, themselves, the rights of the bank are in no wise affected thereby.

Section 4484 of the Kentucky Statutes is as follows:

“The title to all common school and all county seminary property, the county court and the board of trustees of said seminary consenting’, in the limits of any graded common school district, organized under the provisions of this law, shall be, and the same is hereby vested in the board of trustees of said graded common school district, and they are hereby empowered to sell and convey the same, or to use the same for graded common school purposes, as to them shall seem best; but when county seminary property shall be appropriated, all pupils of the county shall be permitted to attend such school at such reduced tuition from what is ordinary as shall be equitable and make good to them! their interest in said seminary property. It is further provided, that when any graded school district shall embrace any school property owned or held in trust by trustees, said trustees, by a majority of their board, are hereby authorized and empowered to convey their school property to the trustees of the graded school, at such price and on such conditions as may be agreed upon by the trustees of both parties.”

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Breathitt County Board of Education v. First National Bank, 188 S.W. 770, 171 Ky. 708, 1916 Ky. LEXIS 415 (Ky. Ct. App. 1916).

188 S.W. 770 (Breathitt County Board of Education v. First National Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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