First Nat. Bank of Port Arthur v. City of Port Arthur

35 S.W.2d 258
CourtCourt of Appeals of Texas
DecidedFebruary 17, 1931
DocketNo. 2089
StatusPublished
Cited by12 cases

This text of 35 S.W.2d 258 (First Nat. Bank of Port Arthur v. City of Port Arthur) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Nat. Bank of Port Arthur v. City of Port Arthur, 35 S.W.2d 258 (Tex. Ct. App. 1931).

Opinion

HIGHTOWER, C. J.

The appellant, the First National Bank of Port Arthur, Tex., hereinafter referred to as the bank, prosecutes this appeal from a judgment of one of the district courts of Jefferson county, awarding to the appellees, the city of Port Arthur and the Central Construction Company, a writ of mandamus directing and compelling the bank to honor and pay a cheek drawn by the city of Port Arthur in favor of the Central Construction Company for the sum of $12,056.58. This check was drawn by the city of Port Arthur against funds that had been placed in the bank as the city’s depository and treasury, and was to pay the Central Construction Company for work done by that company in the construction of what is known and called the Stilwell Storm Drain in the city of Port Arthur. The bank refused to honor and pay the check for the reason, as claimed by it, that the city of Port Arthur was not authorized to expend any part of the fund on which the check was drawn in payment for the character of work that the Central Construction Company had performed for the city in connection with the Stilwell Storm Drain. There being no question of pleading involved as the case is presented to this court, no useful purpose would be served by a minute or detailed statement of the pleadings of the parties. As regards the pleading of the relators in the lower court, it will suffice to say that the allegations of their petition made a case entitling them to the relief sought and which was granted, provided the city of Port Arthur was authorized to expend any portion of the fund against which the check in favor of the Central Construction Company was drawn in payment for the work done by that company for the city of Port Arthur on the Stil-well Storm Drain.

The bank, respondent below, answered by a plea in abatement, general demurrer, and a number of special exceptions, all of which were overruled, and that ruling is not complained of here. The bank further answered by general denial, and then specially averred that the fund against which the check in question was drawn was not subject to its payment for the reason that the city of Port Arthur had no authority under the Constitution and law of this state to expend any, part of that fund in payment for the work done by the Central Construction Company on the Stilwell Storm Drain. The facts upon which the bank bases this contention were minutely and fully stated in its answer, but . it is unnecessary to repeat them here. The material facts that give rise to this controversy are either admitted by the parties or stand undisputed in the record.

The city of Port Arthur is situated on the coast of the Gulf of Mexico in Jefferson county, Tex., and being so situated, is authorized to vote and issue bonds for the purpose of providing means to construct and maintain sea walls and breakwaters, as provided by section 7, article 11, of the Constitution of Texas.

The Forty-First Legislature of the State of Texas, at its Regular Session (chapter 292), passed an act donating to the city of Port Arthur for a period of twenty years, if.necessary, eight-ninths of the state ad valorem taxes in commissioners’ precinct No. 2 of Jefferson county, Tex., in which the city of Port Arthur is situated, for the purpose of aiding the city of Port Arthur in paying the interest and sinking fund upon an issue, of bonds, “The proceeds of which bonds are to be used exclusively in constructing, maintaining sea walls, breakwaters and shore protections in order that said city be protected from calamitous overflows and storm waters. The use and diversion of such monies for any other purpose whatsoever is hereby prohibited.” Section 5. The act further provides for the collection of these taxes by the tax collector of Jefferson county, and directs that official to turn them over to the city treasurer of the [260]*260city of Port Arthur, Tex. It further provides, by section 1 thereof, that the donation of the taxes shall be for a period of twenty years commencing with the fiscal year beginning September 1, 1929. Section 5 of the act has this further provision:

“ ⅜ * * That when the sinking fund created under the provisions of this Act shall become sufficient to retire all bonds issued hereunder, this Act shall cease to be operative and the donation herein made shall cease.”

Section 5 of the act has this further provision:

“ * * * Violation of the provisions of this Section shall constitute a misapplication of public mohey and the person or persons so offending shall be punished as provided for in Article 86 of the Penal Code of the State of Texas.”

It is admitted by appellant, and conclusively shown by the record in this case, that the city of Port Arthur, by proper resolutions, ordinances, and vote of its citizens, was authorized to issue its bonds in the sum of $2,-000,000 “for the purpose of constructing and .maintaining a seawall, breakwaters, and shore protection, in order to protect the City of Port Arthur, Jefferson County, Texas, from calamitous overflows.”

The undisputed evidence discloses that the city of Port Arthur did duly and legally issue $1,700,000 worth of these bonds, which were duly and legally approved, and they were regularly and legally sold and the proceeds thereof placed and deposited in the First National Bank of Port Arthur, Tex., as the city’s legally designated and qualified depository and treasurer. This bond fund is kept by the bank as a separate fund, and the city’s check in favor of the Central Construction ,Company here in question was drawn on this fund.

The city of Port Arthur, according to the undisputed facts, has never levied or collected any tax to take care of the interest or sinking fund of these bonds, but has, up to the present time, relied on the taxes donated by the state for this purpose, and it seems that it is contemplated that this state tax will in the future be sufficient to take care of these items.

The record shows that the city of Port Arthur, at the time of the commencement of this proceeding and for some time prior thereto, had been constructing a sea wall around the city, the plans and specifications of which had been prepared by competent engineers employed by the city for that purpose, and the work was being done under the supervision, direction, and control of these engineers. A great portion of the sea wall contemplated by the city, under the plans and specifications of its engineers, had been done at the time of the filing of this suit, and it is contemplated that the construction of the sea wall will be continued and completed under the supervision and direction of these engineers.

The record discloses that the Stilwell Storm Drain above mentioned connects at right angles with a portion of the sea wall now completed and that this drain or ditch is about 2,000 feet in length. This drain, or ditch, was cut, or dug, about fourteen years ago, and the work that the Central Construction Company did on this drain, and which it is eonteriiplated the company will continue to do, was to place concrete walls in this drain constituting it a concrete conduit, and then the conduit is to be covered with dirt. At the point where this drain connects with the sea wall, pumps have been installed and attached by the city under the supervision and direction of its engineers for the purpose of pumping the water out of this storm drain and over and outside of the sea wall, when necessary.

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

Related

Opinion No.
Texas Attorney General Reports, 1993
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1993
Calvert v. Canteen Company
371 S.W.2d 556 (Texas Supreme Court, 1963)
Shepherd v. San Jacinto Junior College District
363 S.W.2d 742 (Texas Supreme Court, 1962)
City of Port Lavaca v. Bauer
243 S.W.2d 424 (Court of Appeals of Texas, 1951)
White v. City of Port Arthur
201 S.W.2d 65 (Court of Appeals of Texas, 1947)
Baugham v. Willacy County Water Control & Improvement Dist. No. 1
112 S.W.2d 318 (Court of Appeals of Texas, 1938)
Lehers v. Federal Underwriters' Exchange
79 S.W.2d 925 (Court of Appeals of Texas, 1935)

Cite This Page — Counsel Stack

Bluebook (online)
35 S.W.2d 258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-nat-bank-of-port-arthur-v-city-of-port-arthur-texapp-1931.