City of Hazard v. Duff

175 S.W.2d 146, 295 Ky. 628, 1943 Ky. LEXIS 322
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedNovember 3, 1943
StatusPublished
Cited by3 cases

This text of 175 S.W.2d 146 (City of Hazard v. Duff) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Hazard v. Duff, 175 S.W.2d 146, 295 Ky. 628, 1943 Ky. LEXIS 322 (Ky. 1943).

Opinion

Opinion op the Court by

Morris, Commissioner

Affirming.

The first styled appeal is by the City of Hazard from- a judgment holding certain street improvement bonds invalid as against abutting property owners, and the city liable, Duff as trustee being the holder of those in question. The second appeal is by Duff, trustee, prosecuted on the contention that in the event this court holds that the city is not liable, then he would be entitled to have judgment against the owners of the improved property.

On July 22, 1922, the city by ordinance directed improvement of certain streets, and authorizing issuance of bonds to pay for the improvement. The property involved is a block fronting on Maple Street 290 feet, assessed on December 11, 1924 in the name of Sophia Combs, apparently on the same day of issuance of the bonds. In September 1931, nearly nine year's after assessment, and seven years after issuance of bonds, a delay not attempted to be explained, certain banks which had acquired the bonds issued against this frontage, along with some fifty or more other properties, instituted suit to enforce the lien created by issuance of the bonds.

It was alleged that the property owners were in default of principal and interest. The city was made defendant, it being alleged that it was bound under the law *630 to collect all street improvement assessments for the benefit of the bondholders, and that the assessments against all the property involved exceeded 50 per cent of the value thereof, and the city was due the plaintiffs for liens or assessments which exceeded the 50 per cent valuation, and that the city had refused to undertake collections. The only relief asked against the city was for judgment in case it should develop that the levies exceed 50 per cent of the value of the involved lots.

The case, insofar as the 290 feet frontage is concerned, dragged along until October 1935 when Duff intervened, alleging that he had at some undisclosed time become the owner of the bonds, and under order of the court the prosecution continued in his name. The case dragged on until November 1937 when Duff amended, making defendants the heirs of D. Y. Combs, claiming interest in 190 of the 290 feet frontage, and Tolbert Holliday claiming an interest in the same property.

Following this, and in June 1938, Holliday filed answer alleging that in October 1924 D. Y. Combs, admittedly the owner of 190 feet of the frontage, lots 1, 2 and 3, had executed to him a note for $1290.84, due and unpaid, and had executed a mortgage on the three lots. The petition and amendments had alleged that property owners (all involved) had at the time of completion of the improvements signed and delivered the ten year payment plan, the effect of which as per statute was to waive all irregularities in the passage of the ordinances, and estopping themselves from making defense to any action seeking to enforce the lien.

Holliday in an attempt to have his lien declared superior to the statutory lien, asserted that Sophia Combs (admittedly the holder of title to 100 feet, lots 4 and 5) and Richard Combs, her husband, had no interest in lots Nos. 1, 2 and 3, and further that they had never accepted the 10 year payment plan. By way of cross-petition against the heirs of D. Y. Combs, he having died in May 1937, the heirs inheriting, he plead that no assessment had been made as against the property of D. Y. Combs, his widow or heirs, and that none of them had ever executed agreement to accept the ten year plan. Since Holliday claimed no sort of interest in the lots owned by Sophia Combs, his pleading with respect to her lots was of no effect. He made the additional defense, apparently as to all the property, that since the *631 parties had not agreed to the ten year plan, the five year statute of limitation barred any action on the part of the bondholder, on the theory that in the absence of the agreement, and in case of nonpayment by the property holders, for a fixed period, the cause of action was in the city and the period of limitation had expired before suit was instituted.

In June 1939 Sophia Combs answered denying allegations of plaintiff’s pleadings, saying' that she held no title to the D. Y. Combs’ lots, and asserting that she was the title holder of lots 4 and 5, denying that she had been presented with or signed a ten year payment plan. Duff categorically denied the Holliday pleading. The city had theretofore filed answer to the original petition, in the main a denial, but setting up its claim for ad valorem taxes on the 290 feet frontage, asserting superiority as against bond liens, a matter not involved here.

After the plea by Sophia Combs, and some testimony had been presented, Duff filed an amended petition which changed the situation. After adopting original pleadings not inconsistent with the amendment, he plead that since at the time of the assessment of the 290 feet Sophia Combs only owned 100 feet, the assessment was void as to the excess. He further said, “It has developed since the filing of the suit that Sophia Combs did not sign an application for the ten year payment plan, and that any and all bonds issued against her property are void,” even to the extent of the assessment of the 100 feet frontage. For this reason it was asserted the plaintiff ought to recover of the city the total of $1704.70, for which sum plus interest, it asked judgment against the city, without alternative plea.

To this pleading the city was satisfied to file answer which merely denied allegations, raising no other issue. This completed the pleadings, and the court adjudged (1) that Holliday’s lien against the D. Y. Combs’ property superior to that of the bondholders. (2) That Sophia Combs never owned more than 100 feet frontage, and any assessment as against her to the extent of excess frontage was void. (3) “The proof conclusively shows that Sophia Combs did not sign application for the ten year bonding plan; signed no waiver of any kind, and did not authorize any one to sign any such application or waiver, and for this reason the bonds representing the amount expended for improving the 100 feet *632 owned by the defendant are void. ’ ’ The court then held that there had been no legal assessment against the 190 feet assessed in the name of Sophia Combs, owned and in the possession of D. Y. Combs and his heirs (who had signed no waiver), and as to this branch of the case the petition was dismissed. The court then adjudged that all the bonds issued against all the property, and insofar as the pleadings sought lien against the 290 feet, the petitions were dismissed, the court ordering lots 1, 2 and 3 sold to satisfy Holliday’s lien. Judgment was rendered against the city for the assessment against the whole frontage.

The proof shows that Sophia Combs owned no more than 100 feet, the title to the remainder being in D. Y. Combs. The various lots adjoined each other, and it is shown that Sophia and Richmond Combs manifested proprietorship. While the assessment was made against the 290 feet on December 11, 1924, there is in the record a document which in terms of the statute accepts the ten year plan and waives defenses. This purported to bear the signature of Richmond and Sophia Combs as of date January 1, 1925.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
175 S.W.2d 146, 295 Ky. 628, 1943 Ky. LEXIS 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-hazard-v-duff-kyctapphigh-1943.