City of New Baltimore v. Chesterfield Township

290 N.W. 892, 292 Mich. 522
CourtMichigan Supreme Court
DecidedMarch 15, 1940
DocketDocket No. 74, Calendar No. 40,679.
StatusPublished
Cited by2 cases

This text of 290 N.W. 892 (City of New Baltimore v. Chesterfield Township) is published on Counsel Stack Legal Research, covering Michigan 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 New Baltimore v. Chesterfield Township, 290 N.W. 892, 292 Mich. 522 (Mich. 1940).

Opinion

Bushnell, C. J.

The village of New Baltimore was incorporated in 1867. On March 9, 1931, it became reincorporated as the city of New Baltimore, without a change of boundaries. Act No. 279, § 14, Pub. Acts 1909 (1 Comp. Laws 1929, § 2250 [see Stat. Ann. § 5.2093]), reads in part:

“"Whenever an incorporated village is incorporated as a city, without change of boundaries, such city shall succeed to the ownership of all the property of such village and shall assume all of its debts and liabilities. ’ ’

The same section provides:

“"Whenever a new city shall be incorporated, the personal property of the township from which it is taken shall be divided and its liabilities assumed between such city and the portion of the township remaining after such incorporation, in the same ratio as herein provided in case of the annexation of a part of a township to a city, and any real property of a township located in such new city shall be held jointly by such city and the remaining portion of the township in the ratio above mentioned. Such real estate shall be subject to sale by agreement of the governmental units or may be partitioned in the manner provided by law for partitioning of lands held by persons as tenants in common.”

The last-quoted language came into the act by an amendment, which was subsequent to the incorporation of the city in 1931, and, therefore, has no effect upon the rights of the respective parties. See Act No. 233, Pub. Acts 1931, effective September 18, 1931.

In 1930 the total assessed valuation of all taxable property in the township was $5,051,416, of *524 which, valuation that portion lying within the boundaries of the then village of New Baltimore amounted to $1,892,926. In 1931, after the incorporation, the assessed valuation of the township was $2,911,640, and that of the city was $1,602,940. According to the assessment of 1930, 37.47 per cent, of the total assessed valuation of the entire township was within the boundaries of the village.

After the incorporation the respective municipal authorities were unable to agree as to the division, if any, of a parcel of real estate situated in the township upon which the town hall was located, certain highway equipment, township moneys in the hands of its treasurer, and uncollected township taxes.

October 6, 1938, the city filed a bill of complaint seeking a determination of the proportion of the real and personal assets which it claimed to be entitled to by virtue of law. The township moved to dismiss on various grounds.

The trial judge, in his written opinion, called attention to an indebtedness admitted by plaintiff in the sum of $1,588.97, and offered to retain jurisdiction for the purpose of determining’ this issue. He gave the township the option of either dismissing the entire amended bill, with costs, or withholding decision on the motion until a full hearing could be had on the merits. An order was entered dismissing the amended bill of complaint, from which plaintiff appeals.

The controlling question is whether the city became entitled to a pro rata share of the assets of the township at the time of its incorporation.

The claim of plaintiff is based upon the statutes relating to the “Division of Townships,” 1 Comp. Laws 1929, §§ 2326-2333 (Stat. Ann. §§ 5.2201-5.2208). This last numbered section was added by Act No. 46, Pub. Acts 1881, effective September 10th *525 of that year, which appellant claims was enacted because of the decision of this court in Board of Health of Buena Vista Township v. City of East Saginaw, 45 Mich. 257 (January 12, 1881). This case has been cited in School District of Saginaw, East Side, v. School District No. 6 of Buena Vista Township, 231 Mich. 664, and Village of DeWitt v. Township of DeWitt, 248 Mich. 483. In the Board of Health Case, an action for ejectment, plaintiff sought possession of a cemetery lying within the boundaries of defendant city. Mr. Justice Campbell said:

“It is very clear that the legal identity of a township remains unchanged after division, so far as corporate existence is concerned, unless otherwise provided by law. Our statutes have not extinguished the corporation known as the township of Buena Yista. Its authority as a township does not extend over the city, but its property remains unless divested.
“The chapter on the division of towns contains no provision whatever for any division of property, except between the townships created or continued as such by the division. The whole machinery provided for adjusting their respective interests is township machinery. There is nothing in the statute which divests a township of any rights in favor of a city, or provides any means for apportioning property or debts between city and township. And the reason for this is obvious. The whole system of township laws is uniform. It is all governed by general laws. It may very well be regarded as safe and discreet to leave the arrangements on a division to town authorities, who are all on the same footing and vested with the same powers and duties. But cities are not so created. Each has its own charter, and its boundaries, powers and rights as well as responsibilities have always been fixed in every case *526 by special legislation. Unless the act creating the city, or some other act relating to city matters, contains some provision concerning the transfer or distribution of township rights or responsibilities, the township cannot be affected by the city incorporation in any of its property relations. It is quite unimportant to consider the extent of legislative power in such matters, when no such power has been asserted.”

He concluded his opinion by saying:

“There being no statute applying to cities in general, or to this city in particular, the rules applicable to townships, the common-law rule, must prevail, which leaves the property of a corporation unaffected by such changes as leave its corporate character in existence, and do not destroy its corporate identity. There is no common-law rule which can transfer property from one corporation to another without grant. ’ ’

The amendment of 1881 (1 Comp. Laws 1929, § 2333 [Stat. Ann. § 5.2208]), under which plaintiff city insists it is entitled to recover, reads:

“In case the township board or boards of any townships, or the proper board of officers of any township or city, shall neglect or refuse to meet as provided in the preceding sections of this chapter, or having met shall refuse or neglect to arrive at a settlement of the matters and things in difference between them, as provided in this chapter, the township or city whose board shall so refuse or neglect shall be, liable to an action for an accounting and settlement in a suit in chancery, in accordance with the practice therein in the same manner and to the same effect as may be had between individuals or private corporations.

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Bluebook (online)
290 N.W. 892, 292 Mich. 522, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-baltimore-v-chesterfield-township-mich-1940.