Fuller v. Knight

2 So. 2d 605, 241 Ala. 257, 135 A.L.R. 760, 1941 Ala. LEXIS 396
CourtSupreme Court of Alabama
DecidedMay 22, 1941
Docket6 Div. 862.
StatusPublished
Cited by9 cases

This text of 2 So. 2d 605 (Fuller v. Knight) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuller v. Knight, 2 So. 2d 605, 241 Ala. 257, 135 A.L.R. 760, 1941 Ala. LEXIS 396 (Ala. 1941).

Opinion

THOMAS, Justice.

The appeal is to review the action of the lower court in rendering a declaratory judgment upon the agreed statement of facts as set out in the pleadings aided by exhibits made a part thereof.

*259 During the year 1913, an election was ■duly called and held in Cullman County to vote upon the proposition of whether or not the voters of said county favored the issuance of bonds of said county to the amount of $200,000, bearing interest at not exceeding the rate of five per cent per annum, payable semiannually, to run for thirty years, for the purpose of constructing public roads in said county. At said election a majority, of the voters of said county voted in favor of the issuance of ■said bonds in said amount, and thereafter, acting upon said authority, the county duly executed $160,000 principal amount of bonds so authorized, which bonds so issued were dated July 1, 1913, to mature July 1, 1943. In the proceedings of the governing body of the county under which the bonds were issued, it was recited that the remaining $40,000 of bonds authorized at said election would be subsequently issued for the ■ same purpose, if the public good required such action, when the indebtedness of the county should be reduced so that the same might be issued within the constitutional debt limit of the county, at such time as the governing body of the county might deem it proper to issue the same. Said remaining $40,000 of bonds so authorized have never been issued by the county until the present time. On April 14, 1941, at a regular meeting, of the Board of Revenue of Cullman County, a resolution was adopted authorizing the issuance of said additional $40,000 principal amount of bonds so authorized at said election, and finding that a public need for the issuance of said bonds existed for the purpose as originally authorized and that the indebtedness of the county had been reduced to an amount that the issuance of said bonds is. within the constitutional debt limit of said county. This bill was filed by the appellant as a taxpayer, resident and citizen of Cull-man County, for a declaratory judgment. After a hearing on pleadings and proof, the lower court rendered a decree in favor of the respondents and cross-complainants, upholding the validity of said bonds, and the issuance and sale thereof, and from which decree this appeal is prosecuted.

The question for decision is, since Cull-man County issued $160,000 of the $200,-000 principal amount of road improvement bonds, duly authorized by the people to be issued as of March 17, 1913, can the remaining $40,000 of said original authorized bond issue now be issued and sold for the same purpose, time and tenor, after the lapse of twenty years?

Appellee thus states the question. There is no inhibition of the constitution or statutes of this state that will prevent the issuance and sale of said bonds, or from applying the proceeds as prescribed by law under the decision of Stokes v. City of Montgomery, 203 Ala. 307, 82 So. 663; and that the “twenty year rule of repose” is not applicable to the action of public bodies in matters involving the issuance of bonds where a valid authorization is given by the people. In the Stokes case, supra, the facts and holding are succinctly stated in the headnotes, as follows:

.“The city of Montgomery in 1908 had ample authority to aid, establish, set up, and regulate hospitals for the city, and to issue and sell bonds for such purposes, an election having - been held in which the establishment of a hospital and the issuance of bonds for such purposes was voted for, under Acts 1907, p. 865, § 143 (Code 1907, § 1277) Gen.Acts 1903, p. 59 (Code 1907, § 1421).

“Where; in an election in 1908, it was voted in the city of Montgomery that the council be authorized to issue bonds to establish a hospital, there was nothing to prevent the issuance of the bonds in 1919, and the establishment of the hospital, notwithstanding that the form of government was changed in 1911 and is now governed by a board of three commissioners * * *,

“Gen.Laws 1919, p. 57, limiting the time for attacking validity of elections held by a municipality for the purpose of issuing bonds or levying taxes, is remedial and retroactive, and applies to the election of December 14, 1908, in the city of Montgomery, in which it was voted to authorize the city to issue bonds to establish a hospital, and it was proper to issue such bonds in 1919.”

We find no case in the books where twenty years or more had elapsed between the authorization of the original issue or an installment thereof, such as is now proposed.

The object and purpose of the bond issue now proposed is for the same purpose as originally authorized. The bonds as proposed are of like tenor, except as to a reduction of the interest rate, and the consummation date is within the original thirty-year period, duly authorized by the electors of Cullman County.

*260 The decision in Stokes v. City of Montgomery, 203 Ala. 307, 82 So. 663, has not been questioned or qualified, but was cited with approval in Johnson v. City of Sheffield et al., 236 Ala. 411, 183 So. 265, and Town of Camden v. Fairbanks, Morse & Co., 204 Ala. 112, 86 So. 8.

In 25 A.L.R. 613, the case of Stokes v. City of Montgomery, supra, is cited, to the effect that it appeared that “a statute in force in 1908 expressly authorized a city to issue and sell bonds for the building of a hospital. A city election in that year was called and held in conformity with the statute; and a majority of the votes were cast in favor of issuing bonds for a hospital. In 1909 the statute was replaced by one providing for the construction of public buildings by a city. The bonds for the hospital were not issued until the year 1919, when the city council provided for the issue and sale of the bonds. It was held that neither the change in the statute, nor the lapse of time between the election and the provision of the council for the issue and sale of the bonds, was a ground for enjoining the proposed issue and sale.”

Counsel for appellant cite many authorities to the effect that because of the lapse of twenty years between the authorization for and issuance of the bonds, the authority contained in the election is not effective. We will now examine the important cases cited to this effect.

In Wilkerson v. Wilkerson, 230 Ala. 567, 161 So. 820, the action was by decedent’s first wife to set aside a divorce decree obtained by her husband more than twenty years before, and it was held that the rule of prescription (20-year period) was not avoided because complainant had been insane. The case of Wilson v. Holt, 83 Ala. 528, 3 So. 321, 3 Am.St.Rep. 768, also touched rights under a divprce.

In Scott v. Scott, 202 Ala: 244, 80 So. 82, the rule of prescription was applied to all claims or rights of property which had been permitted to slumber without assertion or recognition for twenty years, and the same rule was applied in Kidd et al. v. Browne, 200 Ala. 299, 76 So. 65, as affecting property rights. So of Matthews v. McDade, 72 Ala. 377; Bozeman v. Bozeman, 82 Ala. 389, 2 So. 732; Kidd et al. v. Borum, 181 Ala. 144, 61 So. 100, Ann.Cas.1915C, 1226. In Knabe v. Burden, 88 Ala. 436, 7 So.

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Bluebook (online)
2 So. 2d 605, 241 Ala. 257, 135 A.L.R. 760, 1941 Ala. LEXIS 396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuller-v-knight-ala-1941.