City of Port Townsend v. First Nat. Bank of Central City

241 F. 32, 154 C.C.A. 32, 1917 U.S. App. LEXIS 1732
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 5, 1917
DocketNo. 2833
StatusPublished
Cited by1 cases

This text of 241 F. 32 (City of Port Townsend v. First Nat. Bank of Central City) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Port Townsend v. First Nat. Bank of Central City, 241 F. 32, 154 C.C.A. 32, 1917 U.S. App. LEXIS 1732 (9th Cir. 1917).

Opinion

GILBERT, Circuit Judge

(after stating the facts as above). The defendant presents certain questions which were determined by this court in Intermela v. Perkins, 205 Fed. 603, 123 C. C. A. 619. Those questions were carefully considered, both on the original hearing and on a petition for rehearing, and a petition to the Supreme Court for certiorari was denied. Intermela v. Perkins, 231 U. S. 757, 34 Sup. Ct. 324, 58 L. Ed. 468. One of the questions so decided, and now again presented, was whether the city council of the defendant, which met at a regular session on February 15, 1898, and took recess until a designated hour on February 16th, and thereupon took a further recess until a designated hour on February 17th, could, upon said last-named date, lawfully authorize the issuance of the warrants, in view of the Code provision which inhibited the passing of any ordinance or the allowance of any bill for payment of money at a special meeting, or at any adjourned regular meeting of a city council. We held that such an adjournment taken from day to day does not interrupt the business of the session, that it was the intention and purpose of the council to hold a continuous session, and that such adjournments were permissible, as within the intendment of the statute.

But it is said that facts áre presented in the case at bar which were not before the court in the Intermela Case. Attention is directed to the fact that in the latter case it was said in the opinion that the council met on February 15, 1898, at a regular meeting “and, finding itself unable to complete or transact the business in hand, took a recess * * * until another day, at which time the business in hand was completed”; whereas in the case at bar it is proven that the regular meeting of February 15th was a short meeting, and that all pending business might .have been transacted at that time, and. that the recess was taken because the council was not yet ready to act. Conceding this to be true, it does not take the case out of the rule of the Intermela decision, nor does it create a distinction in principle between that case and this. On the other hand, its tendency is to show that the three [35]*35sessions were in fact but one meeting, and for the consummation of a single purpose. That purpose was the compromise settlement and adjustment of the judgments against the defendant.

Counsel for the defendant cite Seymour v. Ellensburg, 81 Wash. 365, 142 Pac. 875, a decision subsequent in date to the Iutermela Case, as establishing the rule that powers granted to the officers of municipal corporations must be strictly construed, and deciding that, when warrants are drawn upon a city treasurer under a charter which requires that the warrant shall specify for what purpose the same is drawn, and out of what fund it is to be paid, the statute is mandatory, and the warrant is void if it fails to specify the purpose. But there is nothing in that case that conflicts with the decision of this court in the Interínela Case. This court did not. fail to recognize that the statute under consideration in that case was mandatory, but held that the meeting at which the warrants were issued was not an adjourned meeting within the meaning of the statute.

Again, we held in the Interínela Case that the superior court of the state of Washington, in the exercise of “its general jurisdiction, had the authority to determine whether the city became liable generally on contracts for local improvements where its officers had omitted, through neglect of duty or through irregularity of procedure, to make proper assessments for such improvements, and that having such jurisdiction a judgment holding the city to be liable, whether correct or erroneous, was conclusive against the city, and a bar to subsequent contests of the validity of a city warrant issued in payment of a judgment on the same ground. Upon the question whether the defendant in incurring its liability to the plaintiff’s assignors exceeded its constitutional debt limit, there is nothing in the present case to distinguish it from the Interínela Case, and it is unnecessary to add to what was there said.

[1] Questions not presented in the Interínela Case are based upon the assignments that the court erred in refusing to find that, at the time when the warrants were issued, the city authorities of the defendant had full knowledge of the decision of the Supreme Court of the state in German-American Savings Bank v. City of Spokane, 17 Wash. 315, 4-9 Pac. 542, 38 L. R. A. 259, that judgments were entered in all of said suits by the consent of the city officers, that no appeals were taken, and that the warrants were issued in pursuance of a special agreement between certain street grade warrant holders and the city council. The defendant had alleged in its answer that the judgments in the superior court were obtained by fraud, and that the warrants made in payment thereof were issued .clandestinely, in fraud of the citizens and taxpayers of said city, and in direct violation of the decision of the Supreme Court of the state. There is no evidence in the record to support any allegation of fraud. There is nothing to show that the judgments were taken by consent. The fact that eight cases were, all tried in one day is not sufficient in itself to create even a suspicion that the plaintiff’s claims were not contested. Nor is it an indication of consent or fraud that, after the judgments were taken, and before the time for appealing expired, the city council were advised by an [36]*36attorney whom they consulted that they had a good defense to said actions, and could defeat all of the same on appeal, and yet no appeal was taken. There is nothing in the -evidence .to render applicable to the case the decision in Kane & Co. v. Ind. Dist. of Rock Rapids, 82 Iowa, 5, 47 N. W. 1076, cited by the defendant. In that case, in an action which was brought upon a judgment obtained against a school district, it appeared that the directors purposely and intentionally failed to appear and defend, and allowed judgment to be entered by default. The court, in view of the evidence, said:

“In our opinion, the evidence in this case shows that both the parties to that action intended that the plaintiff should recover judgment.”

It is contended that the findings of fact are .insufficient to show that the plaintiff is entitled to a judgment, in that they fail ,to show the condition of the indebtedness fund within tire rule .of this court in First Nat. Bank of Central City v. City of Port Townsend, 184 Fed. 574, 106 C. C. A. 554, and the decision of the state court in State ex rel. American Freehold-Land Mortgage Co. v. Mutty, 39 Wash. 624, 82 Pac. 118, and that the court below found only that certain levies had been made for the indebtedness fund prior to-1908, and that no levy had been made since that year. ■ The act of 1897 (chapter 84, Session Laws of Washington of that year) creates, in cities of the class of Port Townsend, a current expense fund and an indebtedness fund, and requires the city to levy annually a property tax, not to- exceed 10 mills, for the current expense fund, and a tax not to exceed 6 mills for the payment of indebtedness, and that in making the levy, consideration shall be taken of all outstanding warrant certificates, and all other obligation and indebtedness of the city, with interest thereon, for tire payment of which no provision is otherwise made by law, and it provides that all moneys collected on and after February 1, 1898, from taxes of 1896 and previous years, and the penalties and interest, shall be paid into the indebtedness fund.

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Bluebook (online)
241 F. 32, 154 C.C.A. 32, 1917 U.S. App. LEXIS 1732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-port-townsend-v-first-nat-bank-of-central-city-ca9-1917.