Delmar Investment Co. v. Lewis

162 S.W. 675, 180 Mo. App. 22, 1913 Mo. App. LEXIS 293
Missouri Court of Appeals·Decided December 31, 1913·Published·Cited by 4 cases

Opinion

REYNOLDS, P. J.

This is an action on a bond given to plaintiffs by Edward Gr. Lewis, as principal, and James P. Coyle, as surety. The conditions of the bond, so far as here relevant, are that the makers ■“shall hold the said Delmar Investment Company, Southern Real Estate and Financial Company and Charles J. Celia and their property'located on the north side of Delmar Boulevard within the limits of the city •of University City harmless against, and shall pay as and when payable according to law all of the special taxes that may be levied by the city of University City, Missouri, against the property aforesaid, commonly [27] called the Delmar Race Track, of the said obligee for the grading, construction, paving and improvement of Delmar Boulevard within the limits of the said city of University City, including the cost of curbs and sidewalks.”

The breach assigned is the failure of the principal in the bond to pay two certain tax bills charged to have been levied against the property in the bond mentioned, for the grading, construction, paving and improvement of Demar avenue, one of the special tax bills being in the sum of $5260.32, the other for $231.28, the tax bills bearing interest at the rate of 8 per cent per annum from September 30,1910. It is averred that upon completion of the work on August 31, 1910, the city, by its proper officers, issued and delivered to Fruin-Colnon Contracting Company these special tax bills; that notice of the issuance of them and demand upon plaintiffs for payment were made by Fruin-Colnon Contracting Company on the 13th of September, 1910, and that these amounts, with interest at the rate of 8 per cent per annum, are justly due and payable under and by virtue of the levying of these special tax bills; that payment had been demanded by plaintiffs from defendants and payment refused. It is further averred that these tax bills, by their issuance and delivery, became and are valid and subsisting liens upon the property. Judgment is demanded for the penalty of the bond, $25,000, and execution for $5491.60, with interest at the rate of 8 per cent per annum from September 30, 1910, and for costs.

The answers were general denials. Trial was had before the court and a jury, resulting in a verdict, under the direction of the court, in favor of plaintiffs in the sum of $6098.01 and costs. Interposing their motion for new trial, as. also one in arrest of judgment and excepting to the action of the court in overruling them, defendants have duly perfected their appeal to this court.

[28] University City is a city of the fourth class and the law governing such cities is contained in article 5, chapter 84, Revised Statutes 1909, those portions relating to streets, so far as here material, are in sections 9401 to 9411, inclusive.

Counsel for appellants make seven points for reversal which we will take up in their order.

The first point is that the bond sued on is one of indemnity, and as there is no evidence of the payment of any money by respondents, or that they have been' damaged, they could, at most, recover nominal damages. We do not think this point well taken. We have set out the material parts of the bond and interpret it as an absolute, express promise to pay, “as and when payable according to law, all the special taxes that may be levied” against the property. It is not a mere bond of indemnity against damage to plaintiffs caused by their having been compelled to pay them, but is one containing a direct promise to pay. The decision of our Supreme Court in The Salmon Falls Bank v. Leyser, 116 Mo. 51, 22 S. W. 504, settles this proposition against this contention of appellants.

The second point made is that the court committed error in holding that the tax bills in question were prima-facie evidence of the regularity of the proceedings for-such special assessments and the validity of the tax bills. Without deciding whether, in this action on the bond, these tax bills are prima-facie evidence under section 9408, Revised Statutes 1909, we do not understand that the trial court held them to be primafacie evidence. A careful reading of the abstract prepared by learned counsel for appellants fails to show any such ruling. They were admitted in evidence, but merely as competent, not as prima-facie, evidence. It is true that the learned trial court said these special tax bills are prima-facie evidence, but it is obvious, from the rulings that he made and the statement of his position, that he considered them prima-facie evi[29] dence only in connection with the evidence which had been introduced, showing - that the steps required by law preceding their issue, had been taken. There was evidence, outside of these tax bills,-11 of the regularity of the proceedings for such special assessment, of the validity of the bill, of the doing of the work and of the furnishing of the materials -charged for, and of the liability of the property to the charge stated in the bill.” [Section 9408, Eevised Statutes 1909.]

The third point argued by learned counsel for appellants is that it is not shown by the evidence that the city or the board of aldermen had taken the necessary steps to authorize the issuance of the special tax bills and that the same were therefore void. In support of this assignment, it is contended that the resolution of the board of aldermen was fatally defective and did not give the board jurisdiction over the improvement of the street; defective in that it did not set forth the description of the material and kind of work to be done in the improvement of the street in question, both by paving and curbing but also by bringing it to grade, and failed to contain or refer to any specifications for the work.

•The resolution referred to is as follows:

“Resolved, that it is deemed necessary to improve Delmar boulevard in the city of University City, between the easterly city limits and the west line of Oberlin avenue, by (bringing to grade and) paving and curbing the same, such curbing to be set out into the street beyond the sidewalk, and the board of aider-men hereby declares such work of improvement necessary to be done and that, in its judgment and opinion, the general revenue-fund of the city is not in a condition to warrant an expenditure therefrom for bringing the said boulevard to the established grade.”

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Delmar Investment Co. v. Lewis, 162 S.W. 675, 180 Mo. App. 22, 1913 Mo. App. LEXIS 293 (Mo. Ct. App. 1913).

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