Brinkerhoff v. King

194 P. 659, 57 Utah 300, 1920 Utah LEXIS 109
CourtUtah Supreme Court
DecidedDecember 21, 1920
DocketNo. 3584
StatusPublished
Cited by2 cases

This text of 194 P. 659 (Brinkerhoff v. King) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brinkerhoff v. King, 194 P. 659, 57 Utah 300, 1920 Utah LEXIS 109 (Utah 1920).

Opinion

CORFMAN, C. J.

This is an original proceeding commenced by the plaintiff, as a resident and taxpayer of Wayne county school district, to prohibit the defendants, as the school board of said district, from issuing and selling its bonds voted for at a special election held on the 11th day of September, 1920. The irregularities complained of and relied upon by plaintiff, as shown by his petition and bripf herein, are the following:

“(a) The resolution calling said election and the notices given thereof provide that a part of the proceeds of the sale of the proposed bonds should be used in the payment of outstanding notes of the school district, whereas the statute authorizing the calling of an election to vote on the question of issuing bonds does not authorize the issuance of bonds for the purpose of paying outstanding notes of the district. See section 4627, Compiled Laws of Utah 1917.
“(b) That the resolution calling said election and the notice thereof given by the defendants submitted to the electors of the said school district states several separate propositions, to wit, a proposition to issue bonds to buy school sites and build schoolhouses and furnish the same, to pay outstanding bonds; to pay outstanding notes; but the form of the ballot provided by the defendants for use of the electors at such election required the electors to vote for the several separate propositions as an entirety,'and did not permit such electors to express their wishes upon the several separate propositions submitted at such election.”

A copy of the ballot above referred to is attached to the petition, made a part thereof, and, in so far as may ,be pertinent to the issues raised, submitted to the voters the following propositions to be voted upon:

[302]*302“Shall the "Wayne district hoard of education, Wayne county, Utah, be empowered to issue, negotiate, and sell bonds of the Wayne school district to the amount of $30,000 par value, bearing interest at 5 per cent, per annum, payable annually, for the purpose of raising money for purchasing school sites, for building schoolhouses, and supplying the same with furniture and necessary apparatus, for improving the school grounds and refunding outstanding indebtedness to the amount of. $7,800?

Tbe defendants answered the petition, denying irregularities or illegal purposes, and, as a special defense to the matters complained of in the petition affirmatively and in substance alleged that during the month of March, 1920, the school board of Wayne county regularly and legally called and held an election as required by law, whereat the qualified voters of said district unanimously authorized the said school board to create an indebtedness of $30,000 for the “purpose of raising money for purchasing school sites, for building schoolhouses, and supplying the same with furniture and necessary apparatus, and for improving the school grounds and redeeming outstanding bonds amounting to $1,800 ’ ’; that at said election the qualified voters of the district voted a 3-mill tax to be collected annually for a period of 10 years for the purpose of raising funds to pay the $30,000 indebtedness authorized, but did not authorize -the issuance of bonds for the purpose of raising funds to make the improvements authorized as aforesaid; that thereupon the school board undertook to borrow money with which to carry out the purposes for which said $30,000 indebtedness had been authorized, but, owing to the stringency of the money market, was unable to do so; that thereupon the Intermountain Life Insurance Company offered to take the bonds of said district in the sum of $30,000, provided a special bond election be held for such purpose, and meanwhile would, and did, advance to the district $6,000 for, and which was used by the district in purchasing school sites, schoolhouses, and in supplying the same with furniture and apparatus, and in improving the school grounds; that the bond election mentioned and complained of in plaintiff’s petition was therefore called and held in the furtherance of said plan, and for the purpose [303]*303mentioned in the ballots voted thereat, in the form shown by plaintiff’s petition, and at- said election there were 189 votes of the qualified voters of the district cast in favor of said bond issue, and only 15 votes in opposition thereto.

To the defendants’ answer the plaintiff filed a general demurrer, thus testing the sufficiency thereof, and also bringing to the test the sufficiency of the grounds complained of and relied upon by plaintiff in his affidavit and petition as invalidating the proposed bond issue and sale by the district.

In the proper consideration of the issues raised we must as a matter of course, first advert to the provisions of our statutes bearing on the subject of bonded indebtedness of school districts.

Section 1, e. 88, Laws of Utah 1919 (which became effective March 13, 1919), provides:

, “Tbe board of education of any county school district of the first class * * * may borrow money, issuing therefor negotiable notes or bonds, or otherwise create indebtedness for the maintenance of the schools within such district * * * not in excess of the taxes for the current school year; and any such board of education may borrow money issuing therefor negotiable notes or bonds, or otherwise create indebtedness for the purpose of purchasing school sites and erecting school buildings not in excess of any tax that may have been lawfully authorized or imposed for such purposes, and prior to the collection thereof; but no debt in excess of the school taxes for the current year shall be created by the board of education of any county school district of the first class * * * unless the proposition to create such debt shall have been submitted to a vote of such qualified electors as shall have paid a property tax therein during the twelve calendar months next preceding such election, and a majority of those voting thereon shall have voted in favor of incurring such debt.”

It will be seen tbe foregoing section expressly antborizes tbe borrowing of money and tbe issuing of negotiable notes or bonds or to otherwise create indebtedness for tbe purpose of purchasing school sites and erecting school buildings. It also appears beyond any doubt that at both of the elections held by tbe district the qualified voters authorized the creation of the indebtedness for which the proposed bond issue and sale is intended to be made.

[304]*304It is contended and argued by tbe attorney for tbe district that tbe indebtedness authorized, regardless of the forms of the instruments evidencing the same, was for one general purpose, that of providing for and carrying on the educational work of the district, regardless of the fact that in doing so different contingencies might arise and would have to be met that would require separate amounts of the revenue thus raised. We think there is much force in counsel’s contention. There can be no doubt but that the primary purpose for creating the indebtedness of $30,000 was for the one common or general purpose of maintaining the school system of the district, although for the one general purpose several specific objects as means of accomplishing it were specified in the resolution and notice calling the election, and also in the ballots as well used in voting for the bonds in question. Comp. Laws Utah 1917, § 4627, provides:

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Bluebook (online)
194 P. 659, 57 Utah 300, 1920 Utah LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brinkerhoff-v-king-utah-1920.