Ficklen v. City of Danville

131 S.E. 689, 146 Va. 426, 1926 Va. LEXIS 342
Court of Appeals of Virginia·Decided February 25, 1926·Published·Cited by 15 cases

Opinions

Crump, P.,

delivered the opinion of the court.

Pursuant to a resolution adopted by the council of the city of Danville on March 10, 1924, the corporation court of that city entered an order for the holding of a special election on June 10, 1924, the date of the regular municipal election in said city, for the purpose of submitting to the voters of the city the question of giving authority to the city to issue bonds to the amount of $600,000.00 for three specified objects. The resolution of the city council had designated June 10, 1924, as the date for the special election to be held.

The resolution of the city council directed three separate questions to be submitted to the voters, one [429]*429covering an issuance of bonds amounting to $350,000.-00, another of $100,000.00, and the third of $50,000.00; the three contemplated issues being for different designated purposes.

The frame of the question was as follows:

“Shall the city of Danville issue its bonds in the amount of $350,000.00, pursuant to the city charter, for the purpose of building, constructing and improving public free schools in the city of Danville, the said bonds to be payable serially in twenty-five equal annual installments, beginning one year after date of the bonds, and to bear interest at a rate not exceeding' five and one-half per cent per annum, payable semiannually?”

The other two submissions were in the identical language with the above except that the one relative to the $50,000.00 issue stated the bonds were “for the purpose of building and improving sewers in the city of Danville,” and the third providing for the $100,000.00 issue expressed the purpose to be “paving, repaving and improving certain streets in the city of Danville.”

At the election held on June 10th, the three bond issue questions were submitted to the voters of the' city. The corporation court entered an order finding- and adjudging that two-thirds of those voting, including a majority of the qualified voters of the city owning real estate, had cast their votes for the bond issues. A copy of this order having been certified to-the city council, ordinances were offered in that body looking to proper authorization of the municipal authorities to issue and market the bonds.

Upon the presentation of a bill in equity on behalf of the appellants here, fifteen citizens and taxpayers of the city of Danville, as complainants, against the city [430]*430and also the mayor and other municipal officers of the city as defendants, the judge of the circuit court awarded a preliminary injunction on August 24, 1924, restraining the defendants from taking any steps to issue, negotiate or sell the bonds under the proceedings mentioned. The bill alleged, for reasons set out in detail, that the election of June 10th was illegally held and that a majority of the qualified voters of Danville owning real estate had not cast their votes for the bond issues.

On October 31, 1924, at the succeeding term of the' circuit court, the ease was heard and argued upon the bill and amendments thereto, upon the dem.urr'er and the answer of the defendants, and the court entered a final order sustaining the demurrer and dismissing the bill of complaint at the cost of complainants. From this order an appeal was allowed.

At the time an appeal was allowed a supersedeas was also granted and a supersedeas bond in a large amount required. Upon the application of the appellants within a few days thereafter, the petition for a supersedeas was withdrawn, in consequence of which the judge of the appellate court allowing the appeal restricted it to a writ of appeal alone and reduced the bond from seventy-five thousand dollars to five thousand dollars. We agree, however, with the position taken in argument here by the attorney for the city of Danville that the pendency of an appeal to the appellate court in a case of this character operated practically as a complete inhibition upon the authorities of the city to issue the bonds involved. It is so manifest as to be beyond question that under the circumstances it was entirely out of reason to expect any investor to put his money in the bonds, so that it was impossible for the city to undertake to issue and [431]*431negotiate any of the bonds. If the city therefore desired a speedy settlement of the question whether the contemplated public improvements were to be undertaken, no reliance could be placed upon the possibility of raising funds for that purpose from the bond issue in question in this case, so long as the appeal was pending.

The following circumstances are now brought to the attention of the court by proper evidence. It appears that in March, 1925, the city council of Danville adopted ordinances providing for a special election to authorize bonds amounting to $500,000.00 in three separate series for the same three purposes for which the prior election had been held. This election was ordered by the corporation court held on May 5th, and the court certified to the council that the requisite number of qualified voters holding real estate had voted for the bond issues by a considerable majority beyond two thirds. The questions submitted to the voters at the election ón May 5, 1925, were identical with the three questions hereinabove set out as to the $350,000.00, $50,000.00 and $100,000.00 issues of bonds respectively, with the exception that to each question was added, the following language: “And said bonds to be issued, instead of and not in addition to the bonds for this-, purpose authorized at the election held June 10, 1924.”' On June 24, 1925, the issuance and sale of the three sets of bonds was authorized by the city council, except, that as to the school bonds only $150,000.00 was then authorized, and these bonds were subsequently under the authority of this ordinance executed, negotiated and delivered.

In the ordinance of March 12, 1925, directing the submission of the issues to a vote of the electorate, and authorizing the corporation court of the city to [432]*432order an election, the ballot as to each of these three classes of bonds, as recited in the ordinance itself, was in the following form:

“Shall the city of Danville issue its bonds in the amount of fifty thousand ($60,000.00) dollars, pursuant to the city charter, for the purpose of building and improving sewers in the city of Danville, the said bonds to be payable serially in twenty-five equal annual installments beginning one year after the date of the bonds, and to bear interest at the rate of not exceeding five and one-half per cent per annum, payable semi-annually, the said bonds to be issued instead of and not in addition to the bonds for this purpose authorized at the election held June 10, 1924?

“FOR BOND ISSUE “AGAINST BOND ISSUE.”

Orders were entered in the corporation court, relative to the three sets of bonds, on May 9, 1925, in accordance with section 3088 of the Code of Virginia. Each of these orders sets out in terms the questions submitted to the people in the form just above transcribed.

In the elaborate ordinances approved June 24, 1925, reciting prior proceedings, authorizing the issuance of the respective sets of bonds, and containing a form for the bonds, the questions submitted at the election on May 5th are again transcribed in full. .

Free access — add to your briefcase to read the full text and ask questions with AI

Ficklen v. City of Danville, 131 S.E. 689, 146 Va. 426, 1926 Va. LEXIS 342 (Va. Ct. App. 1926).

131 S.E. 689 (Ficklen v. City of Danville) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Godlove v. Rothstein
Supreme Court of Virginia, 2022
Hollowell v. Virginia Marine Resources Commission
691 S.E.2d 500 (Court of Appeals of Virginia, 2010)
Coady v. Strategic Resources, Inc.
515 S.E.2d 273 (Supreme Court of Virginia, 1999)
Harper v. CITY COUNCIL OF CITY OF RICHMOND
261 S.E.2d 560 (Supreme Court of Virginia, 1980)
Harper v. City Council of Richmond
261 S.E.2d 560 (Supreme Court of Virginia, 1980)
Lewin v. Board of Trustees
62 Cal. App. 3d 977 (California Court of Appeal, 1976)
City of Richmond v. County of Henrico
41 S.E.2d 35 (Supreme Court of Virginia, 1947)
McCready v. Lyon
187 S.E. 442 (Supreme Court of Virginia, 1936)
Potts v. Mathieson Alkali Works
181 S.E. 521 (Supreme Court of Virginia, 1935)