City of Weslaco v. Porter

56 F.2d 6, 1932 U.S. App. LEXIS 2685
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 13, 1932
DocketNo. 6069
StatusPublished
Cited by6 cases

This text of 56 F.2d 6 (City of Weslaco v. Porter) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Weslaco v. Porter, 56 F.2d 6, 1932 U.S. App. LEXIS 2685 (5th Cir. 1932).

Opinion

WALKER, Circuit Judge.

This was an action on instruments purporting to be interest-bearing funding warrants, payable to bearer, of the city of Weslaco, a Texas municipal corporation, the appellant, issued pursuant to an ordinance of that city adopted July 20, 1926, authorizing the issue of funding warrants, payable to bearer, in the sum of $50,000 in lieu of the same amount of general indebtedness warrants issued by that city, dated July 15, 1926. The appellant denied that the instruments sued on were ever issued by it, or by officers authorized by law to issue such instruments; denied that the alleged ordinance purporting to authorize the issue of the instruments sued on was ever passed, ordered, or ordained by appellant, or by its city commission, as required by law, and denied that the alleged ordinance purporting to authorize the issuance of warrants dated July 15, 1926, was ever passed, ordered, or ordained by the appellant, or by its city commission, as required by law. Each of the instruments sued on contained the following: “And it is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the issuance of this warrant, have been properly done, happened and performed, in regular and due time, form and manner, as required by law, and that the total indebtedness of said City, including this warrant, does not exceed the constitutional or statutory limitation.” The declaration as amended contained allegations to the effect that the warrants provided for by the ordinance of July 15, 1926, which were exchanged for the funding warrants, a part of which were sued on, were issued and delivered to one O. O. Nor-wood, in payment for services rendered by him in bringing about the funding of $225,000 of street improvement and waterworks warrants issued by appellant into bonds for the same principal amount,” but bearing a lower rate of interest and maturing later than the warrants for which the bonds were substituted.

In the trial there was evidence to the following effect: The entire issue of warrants purported to be provided for by the alleged ordinance of July 20, 1926, was sold by O. O. Norwood on July 27, 1926, to a corporation located at Wichita, Kan., for 90 cents on the dollar after that corporation had been furnished a certified copy of purported proceedings of the appellant in reference to such issue, and the opinion of a lawyer as to the legality and validity thereof. The certified copy so furnished included what purported to be a copy of minutes of a meeting of the commission of appellant held on July 20, 1926, at which was adopted an ordinance authorizing the issue of such warrants, that purported ordinance setting out the form of the authorized warrants, the instrument sued on being in that form. The purported copy of such minutes was by M. F. Armstrong, Jr., then clerk of appellant, certified to be “the full, true and correct copy of the minutes of the Board of Commissioners of said City, showing all proceedings had by said Board in connection with the passage of the ordinance therein mentioned as the same appears of record in Book 1, page 230, et seq., of the minutes of said Board, and that the copy of said ordinance as contained in said minutes is a true and correct, copy of the ordinance as passed by said Board of Commissioners.” An officer of the corporation which bought said warrants, who acted for it in making the purchase, stated that he believed to be true the recitals contained in the documents submitted, and relied upon the signatures on the certificates, the attestations, and recitals of officials of appellant appearing in and upon such papers and documents. That corporation sold the instruments sued on to the appellee J. H. Porter, on July 27, 1926, for 100 [8]*8cents on the dollar. Porter testified that he examined the warrants he bought and read the recitals therein at the time he bought them and before he paid for them, and that he believed the recitals in the warrants to be true, and that so believing he relied on what the warrants said, and on the signatures of the city officials and the seal of the city appearing on the warrants. In July, 1926, the governing body of the appellant was a commission composed of J. H. Herold, who was the may- or, and two other commissioners, J. L. Compere and Dar Ratliff. Compere and Ratliff each testified that no meeting of the city commission was held on July 15, 1926, that no such ordinances as the purported one of July 15, 1926, and the purported one of July 20, 1926, were ever offered, voted on, or passed at any meeting of the commission of the appellant, and that neither of them ever heard of either of those purported ordinances until documents in the form of minutes of such commission showing the adoption of such ordinances were discovered subsequent to' April, 1927. In July, 1926, there was in existence, and in the custody of appellant’s then clerk, a bound volume having in its back the figure “1” and the words “Record of Ordinances.” That book contained no copy of the above-mentioned purported ordinances, and those instruments were not copied in any book furnished by appellant or in possession of its clerk. In July, 1926, that official had in his possession a book in which were entered minutes or memoranda of proceedings of the city commission of appellant. That book did not contain a copy of either of the above-mentioned purported ordinances or any mention of or reference to either of them. It contained no mention of a meeting of the commission on July 15, 1926. It contained the following: “Regular Meeting July 20, 1926, present Mayor Herold, Commissioners Ratliff and Compere. Bills allowed.” There was no evidence tending to prove that prior to July 15, 1926, the appellant by formal corporate action or otherwise had any agreement or contract with O. O. Norwood as to his rendering any services to or for appellant or as to appellant paying him for services rendered in getting warrants exchanged for bonds or for anything else. When M. F. Armstrong, Jr.’s, term of office as clerk of appellant expired he did not deliver to his successor in office or to any other official of appellant any book or paper showing or indicating the passage or existence of either of the above-mentioned purported ordinances. After he ceased to be clerk unrecorded and unbound typewritten instruments in. the form of minutes of meetings on July 15, 1926, and July 20, 1926, of the commission of appellant, signed by its mayor and attested by its clerk, and purporting to show the adoption of said purported ordinances, were discovered in the law; office of said Armstrong by ail auditor engaged in investigating the liabilities of appellant under an employment by the commissioners of appellant who succeeded those who were in office in July, 1926. Subsequently two other typewritten instruments similar to the just mentioned ones were found in the same law office. Herold and Armstrong, respectively the mayor and clerk of appellant, in July, 1926, as witnesses for appellee, testified that the above-mentioned purported ordinances of July 15 and July 20, 1926, were passed as indicated by the typewritten instruments purporting to be minutes of meetings of the commission on those dates.

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Bluebook (online)
56 F.2d 6, 1932 U.S. App. LEXIS 2685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-weslaco-v-porter-ca5-1932.