Curtis v. Haynes Special School District H.

193 S.W. 523, 128 Ark. 129, 1917 Ark. LEXIS 494
CourtSupreme Court of Arkansas
DecidedMarch 19, 1917
StatusPublished
Cited by4 cases

This text of 193 S.W. 523 (Curtis v. Haynes Special School District H.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Curtis v. Haynes Special School District H., 193 S.W. 523, 128 Ark. 129, 1917 Ark. LEXIS 494 (Ark. 1917).

Opinions

Wood, J.,

(after stating the facts). This proceeding was begun in the county court under the authority of the act of April 1, 1895, Act 66, page 82, which provides: “Section 1. The county courts of this State shall have power to dissolve any school district now established, or which may hereafter be established in its county, and attach the territory thereof in whole or in part to an adjoining district or districts, whenever a majority of the electors residing in such district shall petition the court so to do. ’ ’ Section 2 provides for notice to be given. Section 3 provides: “ Whenever, under this act, any district shall be abolished, any indebtedness due by it or funds on hand to its credit shall be proportioned by the court among the districts to which its territory has been attached, according to the value of the territory each received, of which action of dissolution and distribution of indebtedness or funds, as the case may be, the clerk of the court shall give due notice to directors of each district affected, showing the territory attached to their district, and amount of indebtedness adjudged against it, or funds credited to it, as the case may be. ’ ’

(1) As already set forth in the statement, in the recent case of Hughes v. Robuck, 119 Ark. 592, we held that under this statute county courts had jurisdiction to dissolve special school districts, as well as common school districts.

It appears from the recitals in the judgment that the intervention was presented on the day and at the time when the court took up the matter for final hearing. The recitals also show that at the same time there was a motion to strike and a demurrer filed to the intervention, which the court sustained. The judgment further recites that “all indebtedness due by Special School District H and all funds on hand held by it be proportioned between said District No. 1 and said District No. 39 in proportion to the value of the territory received by said common school districts,” and the clerk of the county court was directed to give.due notice to the directors of each of the districts affected by the judgment of the territory attached to their respective districts.

Appellant Speer contends that the allegations set forth in his intervention, which the court disposed of’ on demurrer and motion to strike, were sufficient to show that he was the owner of valid and subsisting obligations of the district amounting in principal and interest to the full time of maturity, in excess of $14,000, and that these allegations were conceded by the demurrer and motion, and that therefore the court, on these facts, had no power to dissolve the district. The ground of his protest goes to the power and jurisdiction of the county court to render a judgment dissolving the district rather than to any error in the judgment of the court as to the apportionment of the indebtedness of the district. He argues that the Legislature did not intend to confer upon county courts the jurisdiction to dissolve special school districts because a dissolution of such districts would have the effect to impair the obligations of its valid subsisting contracts, and that the act, when thus construed, is unconstitutional and void. This court held otherwise in Hughes v. Robuck, supra, and it adheres to that decision.

In the above case we recognized the doctrine that special school districts could not be dissolved if such dissolution had the effect to impair the obligations of their contracts. We there say that “the legislative control over the creation and boundaries of school districts is plenary, subject only, however, to the limitation that such action shall not impair the contracts or obligations of such districts. ’ ’

But in the judgment dissolving the district the court adjudged that all indebtedness due by the special school district and all' funds on hand by it be proportioned between District No. 1 and District No. 39 in proportion to the value of the territory received by each of said common school districts. Moreover, in Special School Dist. No. 2 v. Special School Dist. of Texarkana, 111 Ark. 379, we held that, “the Legislature has unrestricted power over the formation of school districts, and the making of boundaries thereof; and legislation on the subject is not affected by a failure to adjust the equities between the old and new districts.”

•Now learned counsel for appellant Speer concedes in his brief that the amount received from the bonds, towit, the sum of $8,500, “is now in the hands of the district and under the control and management of the board of directors.” While Speer alleged "that some of the interest on the bonds was then past due and unpaid, he does not anywhere specifically allege what the amount of that interest is, and in response to the motion to make his complaint more definite and certain, he alleges that he did not know the names of the owners, or the amounts and numbers of the bonds that were held by other owners, nor could he state how many of the bonds were sold and how many unsold. In the prayer of his complaint he does not ask for judgment for the $8,500 with accrued interest thereon up to the date of the judgment dissolving the district, but he only prays that the petition for dissolving the district be dismissed and that the district be not dissolved.

(2) If upon the order of the county court dissolving the district, the $8,500 that had been furnished the district had been returned to the owners, with interest that had accrued thereon, this would be all that the district was obligated to pay. Speer and the bondholders contracted with the district with reference to the laws of the State, and they must be held to have known, if we are correct in our construction of the act of April 1,1895, that such districts could be dissolved by the county court, and that such dissolution would necessarily have the effect to destroy any executory contracts of the district. When the district was dissolved, ipso facto its outstanding bonds became due, and there was no obligation upon the district to pay more than the face of such bonds with the interest that had accrued at the date of the order dissolving the district. There are no allegations in Speer’s intervention asking that this be done or alleging facts showing that such relief would have been impracticable.

(3) Moreover, as we have already seen, the court adjudged that all indebtedness due by the Special School District IT and all funds on hand by it be proportioned betweeh District No. 1 and District No. 39. If these districts, Nos. 1 and 39, were adjoining districts to District IT, which was dissolved, then the judgment of the court not only did not impair the obligations of the contracts of District H, but, on the contrary, expressly recognized these obligations and provided for their payment by Districts Nos. 1 and 39 in proportion to the value of the territory received by each of said common school districts.

It was not an abuse of discretion or an error for which a judgment of the court dissolving the district should be reversed because it did not undertake to ascertain and fix the amount of the obligations then outstanding against Special District H and adjudge the proportional sums of the indebtedness that the adjoining common school districts should pay. That is a matter that could be ascertained and worked out in the future. The only limitation upon the power of the court to dissolve the district 'is that it “shall not impair the contracts or obligations of such district. ’ ’

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Bluebook (online)
193 S.W. 523, 128 Ark. 129, 1917 Ark. LEXIS 494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curtis-v-haynes-special-school-district-h-ark-1917.