City of Alton v. COUNTY COURT OF ST. CHARLES CTY., MISSOURI

156 N.E.2d 531, 16 Ill. 2d 23, 1959 Ill. LEXIS 237
CourtIllinois Supreme Court
DecidedJanuary 23, 1959
Docket34914
StatusPublished
Cited by13 cases

This text of 156 N.E.2d 531 (City of Alton v. COUNTY COURT OF ST. CHARLES CTY., MISSOURI) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Alton v. COUNTY COURT OF ST. CHARLES CTY., MISSOURI, 156 N.E.2d 531, 16 Ill. 2d 23, 1959 Ill. LEXIS 237 (Ill. 1959).

Opinion

Mr. Justice Schaefer

delivered the opinion of the court:

This is an appeal by the State of Missouri and the State Highway Commission of Missouri from a decree of the city court of the city of Alton. The decree discharged the receiver of the Clark Bridge which crosses the Mississippi River from Alton, Illinois, to St. Charles County, Missouri, and approved his final report. On this direct appeal the appellants, who were not parties to the action in the trial court, seek to challenge certain orders relating to the payment of attorney’s fees by the receiver. In our disposition of the case we reach only procedural problems that relate to the propriety of this appeal. A statement of the relevant facts is necessary to- an understanding of those problems.

The bridge was originally constructed by a private individual as a toll bridge under the authority of an act of Congress. (Pub. Law 274, H.R. 10090, 69th Cong., 1st Sess., 44 Stat. 620, as amended hy Pub. Law 679, H.R. 16778, 69th Cong., 2nd Sess., 44 Stat. 1270.) That act recognized that the bridge might be acquired by a governmental unit. It provided that upon payment of the bonds issued by the governmental unit to finance the cost of acquisition, the bridge “shall thereafter be maintained and operated free of tolls or the rates of toll shall thereafter be so adjusted as to provide a fund of not to exceed the amount necessary for the proper care, repair, maintenance and operation of the bridge and its approaches.” 44 Stat. at 621.

St. Charles County, Missouri, became the owner of the bridge through foreclosure proceedings in 1936. By January 1, 1950, all but $25,000 of the bonds that had been issued by the county to pay the cost of acquiring the bridge had been retired from the proceeds of tolls collected from those who used the bridge. Those bonds were allowed to remain outstanding, and by May 16, 1952, the county had on hand an accumulated surplus of $400,000 in toll revenue. It then entered into an agreement with the State Highway Commission of Missouri which provided that the county would continue to collect tolls for use of the Clark Bridge until June 30, 1956, that the State Highway Commission would construct a new highway approach on the Missouri side of the bridge, that the county would pay to the commission all net toll revenues plus the $400,000 on hand until this project had been paid for, and that on June 30, 1956, the county would redeem and retire the $25,000 in outstanding bonds and transfer the bridge and any net toll revenues remaining to the State Highway Commission. The basic dispute arises from the use made by St. Charles County of more than $3,000,000 of toll revenues collected after January 1, 1950. Most of this money was spent for the construction of highway facilities in St. Charles County and for the purchase of real estate and erection of an office building in Alton.

In June of 1956 St. Charles County announced its intention to discontinue the collection of tolls and to transfer the bridge to the State Highway Commission of Missouri. The city of Alton then filed its complaint in this case. The complaint alleged that the application by St. Charles County of over $2,000,000 of toll revenues to highway construction and to the repair and improvement of the approaches to the bridge on the Missouri side of the river, without any comparable disbursement for the improvement of the bridge approaches in the city of Alton, constituted a fraud on the taxpayers of the city of Alton. It sought an injunction restraining St. Charles County from conveying that portion of the bridge located in the city of Alton and the appointment of a receiver to collect tolls in order to insure that the bridge approaches in the city of Alton would likewise be repaired and improved from toll revenue.

Proper service of process was made on St. Charles County. It failed to appear, and on June 29, 1956, an injunction was issued, restraining it from conveying that portion of the bridge located in the city of Alton. Paul W. Davey was appointed receiver, and was ordered to begin collection of tolls at the Alton toll station. Anthony W. Daly, Schaefer O’Neill and Emerson Baetz were appointed attorneys for the receiver.

On July 2, 1956, St. Charles County conveyed the Clark Bridge and its approaches to “the State of Missouri acting by and through the State Highway Commission of Missouri.” Shortly thereafter the State of Missouri filed actions for injunctive relief against the receiver and the judge of the city court of Alton in the United States District Court for the Southern District of Illinois. Subsequently it dismissed these actions upon its own motion. It then initiated an original action in the Supreme Court of the United States but its motion for leave to file a complaint for an injunction was denied. (Missouri v. Davey, 352 U.S. 886, 1 L. ed. 83.) Emerson Baetz and Anthony W. Daly defended these suits.

The city court of Alton adjudged St. Charles County to be in default, heard evidence presented on behalf of the city of Alton, and on August 10, 1956, entered a decree pro confesso. The decree found that the application of toll revenue by St. Charles County for improvement of the Missouri approaches to the Clark Bridge without improving the approaches on the Alton side was “a constructive fraud upon the plaintiff The City of Alton and the citizens and taxpayers of the City of Alton and the State of Illinois.” The decree continued the original injunction and the receivership until such time as the court might approve a plan to improve the Clark Bridge and its approaches or to construct new approaches.

On January 10, 1957, Missouri filed its limited appearance in the city court of Alton and suggested that the court lacked jurisdiction in the principal case. This suggestion was rejected. Thereafter the State of Missouri and Karl K. Hoagland, a user of the bridge, initiated an original mandamus action in this court to compel the city court of Alton to expunge its orders. We found that the city court of Alton had jurisdiction of the parties and of the subject matter, and denied the writ. (People ex rel. Hoagland v. Streeper, 12 Ill.2d 204.) Messrs. Baetz and Daly participated in the defense of this action.

On December 3, 1957, Rolla J. Mottaz and Francis M. Karr of Alton were granted permission by the city court of Alton to intervene for the purpose of suggesting a plan to end the receivership. They were represented by Roland C. Mottaz and Harold G. Talley, who appear in this case as special counsel for the present appellants. Hearings were had upon various suggestions with respect to the termination of the receivership, and on December 7, 1957, the court entered an order suspending the collection of tolls. Thereafter the State Highway Commission of Missouri and the Department of Public Works and Buildings of Illinois executed a “preliminary agreement” whereby the former agreed to convey to Illinois that portion of the Clark Bridge located in the State of Illinois, and Illinois agreed to undertake the repair and maintenance of that portion. It was further agreed that all funds remaining in the hands of the receiver, amounting to approximately $370,000, were to be paid to the Department of Public Works and Buildings of Illinois and deposited in the Road Fund, and that other funds, amounting to approximately $200,000, theretofore received by Missouri from St.

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Bluebook (online)
156 N.E.2d 531, 16 Ill. 2d 23, 1959 Ill. LEXIS 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-alton-v-county-court-of-st-charles-cty-missouri-ill-1959.