Diefenderfer v. State ex rel. First National Bank of Chicago

80 P. 667, 13 Wyo. 387, 1905 Wyo. LEXIS 16
CourtWyoming Supreme Court
DecidedApril 25, 1905
StatusPublished
Cited by5 cases

This text of 80 P. 667 (Diefenderfer v. State ex rel. First National Bank of Chicago) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diefenderfer v. State ex rel. First National Bank of Chicago, 80 P. 667, 13 Wyo. 387, 1905 Wyo. LEXIS 16 (Wyo. 1905).

Opinion

Potter, Ciiiee Justice.

'i'lais was a suit in mandamus brought in the District Court in the name of the State on the relation of the First National Bank of Chicago to compel the issuance and deliver}'- to the relator of the refunding water bonds of the town of Sheridan to the amount of seventy-five thousand dollars, of the denomination of five hundred dollars each, bearing interest at five per cent per annum, and payable in thirty years after their date, but redeemable at the option of the town in 'ten years, in accordance with an ordinance of said town enacted June 15, 1903, providing- for the issuance of such bonds for the purpose of redeeming and refunding the same amount of outstanding water bonds issued in 1893, which outstanding bonds became redeemable according to their terms on August x, 1903. The relator claimed a right to the relief sought by virtue of an alleged contract between it and the corporate authorities of the town made June 18, 1904, as the result of a proposal of the relator, at the solicitation of the town authorities, to purchase the bonds at par, and an acceptance of such proposal.

The Town of Sheridan, Alfred Diefenderfer as Mayor, J. F. Hoop as Clerk, G. T. Stahl as Treasurer, and the individual members of the Board of Trustees or Council of the town, were joined as defendants, and an alternative writ was issued returnable September 3, 1904, the suit having been commenced August 9, 1904. The answer contained a general denial of the allegations of the petition respecting the contract relied on by the relator and the duties of the respective town officers to issue and deliver said bonds, or cause the same to be issued and delivered, to the relator, and also set up certain separate and specific defenses which may he summarized as follows: (1) The absence of any provision by ordinance or statute prescribing the manner of giving notice for the redemption of the outstanding bonds, and the failure of the Town Treasurer to ascertain and advise the corporate hoard as to the bonds, [396]*396their amount, etc., ready for retirement. Under this defense the claim seems to have been that until such provision and ascertainment had been made the Council or Board of Trustees, as the corporate board, is indifferently designated in the statute, was not in a position to issue the bonds or accept a bid therefor. (2) The submission of a more favorable bid by another party (Shepard & Co.) on August x, 1904, after the alleged acceptance of relator’s bid. (3) After the alleged acceptance of relator’s bid, the passage of a, supplemental ordinance, viz: oix August 1, 1904, requiring an advertisement for bids to be submitted and opened on. September 5, 1904. (4) The submission of a bid by another party (Shepard & Co.) on September 5, 1904, agreeing tO'pa}r a slightly larger sum for the bonds than that called for by relator’s bid, and the alleged acceptance thereof by the Town Council. In this connection, however, it appeared that such acceptance -was conditional only, having been express^ made conditional upon the decision of the court in this suit being in favor of the town, and if unfavorable, then such acceptance, it was declared, should be null and void.

Upon a trial of the cause the District Court found for the plaintiff, and found specifically among other things that in 1893 the town had duly issued its water bonds to the amount of seventy-five thousand dollars, bearing interest at six per cent, which were outstanding and unpaid and redeemable; that an ordinance had been. duly and regularly enacted June 15, 1903, for refunding said indebtedness by issuing bonds in the same amount to bear interest at five per cent per annum, to run in denominations of five hundred dollars each, and to be payable in thirty years, but to be redeemable in ten years at the option of the town; that the corporate authorities had duly offered the said refunding bonds for sale according to the terms of said ordinance to the highest bidder for cash; that on July 18, 1904, the relator had bid par for the bonds and was the highest bidder up to that time, there having been several bids thereto[397]*397fore received; and that on said date the bid of relator was duly and fully accepted by the corporate authorities of the town. Thereupon a peremptory writ of mandamus was awarded the plaintiff, requiring the defendants, the town and its officers aforesaid to make and cause to be signed, executed, sealed, registered and delivered to the relator such refunding bonds, the same to be dated not later than January 1, 1905, upon payment by the relator into the town treasury of the sum of seventy-five thousand dollars, and each officer was thereby required to perform his particular duty in respect to the issuance of the bonds as provided by ordinance.

The judgment was rendered November 15, 1904, and on December 29, 1904, this proceeding in error to review such judgment was instituted in this court by Alfred Dief-enderfer as Mayor of the town, J. F. Hoop as Clerk, and D. Kahn as Councilman and member of the Board of Trustees. The Town of Sheridan, by its corporate name, the other members of the Board of Trustees, and the Treasurer were joined as defendants in error with the plaintiff below.

The principal defendant in error, the State on relation of the bank, filed a motion-to dismiss the petition in error upon the following grounds: (1) That there is no longer any controversy pending in the cause; (2) that since the judgment the authorities of the town have directed the issuance of the bonds to the relator, and have fully complied with the judgment; (3) that neither of the plaintiffs in error have any appealable interest in the cause. The hearing was had upon that motion.

The motion to dismiss is based generally upon facts occurring since the rendition of 'judgment, shown by an affidavit of the Town Treasurer attached to the motion, containing duly certified copies of certain resolutions adopted by the corporate board on November 21, and December 19, 1904, showing thereby that the Council or Board of Trustees on November 21, 1904, not desiring to appeal, but [398]*398being willing to abide the judgment, adopted a resolution recognizing the contract with relator for the sale of the bonds in question, and directing their issuance, execution, sale and delivery to relator, in accordance with such contract and the judgment aforesaid, and requiring them to be dated January 1, 1905. That resolution also prescribed a form for the bonds and coupons to be attached, provided specifically for a notice to be given by the treasurer for the redemption of the outstanding bonds, and that interest should cease thereon on January 1, 1905, arid required the Mayor to sign the new bonds and a certificate thereon to be endorsed attesting the legality of their issue, the clerk and treasurer to countersign the bonds, and the clerk to affix the corporate seal thereto. It is shown by the affidavit that notices were at once published by the treasurer calling upon the holders of the outstanding bonds to surrender them for payment and cancellation on January 1, 1905, at the Chemical National Bank, New York City; that by direction of the said treasurer, the relator on or before that date deposited the purchase price of the bonds, $75,000, at said Chemical National Bank to the credit of the town of Sheridan, and the treasurer on said date deposited in said bank a sufficient sum of. money to pay all the interest on the outstanding bonds then due and unpaid; and that many of the outstanding bonds have been paid out of such deposits by said bank upon the direction of the treasurer.

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Related

State v. Sonderman
141 N.E. 257 (Indiana Court of Appeals, 1923)
Town of Sheridan v. Stahl
102 P. 660 (Wyoming Supreme Court, 1909)

Cite This Page — Counsel Stack

Bluebook (online)
80 P. 667, 13 Wyo. 387, 1905 Wyo. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diefenderfer-v-state-ex-rel-first-national-bank-of-chicago-wyo-1905.