Harold v. Warren County Board of Supervisors

38 Va. Cir. 467, 1996 Va. Cir. LEXIS 99
CourtWarren County Circuit Court
DecidedMarch 13, 1996
DocketCase No. (Law) 96-20
StatusPublished

This text of 38 Va. Cir. 467 (Harold v. Warren County Board of Supervisors) is published on Counsel Stack Legal Research, covering Warren County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harold v. Warren County Board of Supervisors, 38 Va. Cir. 467, 1996 Va. Cir. LEXIS 99 (Va. Super. Ct. 1996).

Opinion

By Judge John E. Wetsel, Jr.

This case came before the Court on March 7, 1996, for hearing on the Petition for a Writ of Mandamus to compel the Board of Supervisors to close on a school loan from the State Literary Fund and proceed with the construction of a new high school, whose construction and funding had been approved by a prior Board of Supervisors.

The parties appeared with their counsel, Edward F. Greco and Clifford A. Athey, Jr., for the Petitioner, and Douglas W. Napier for the Defendants. Upon review of the matter and with the concurrence of the parties, the Court tried the case on its merits as opposed to ruling on the Defendants’ demurrer. All the parties’ prefiled exhibits were admitted into evidence, the [468]*468parties’ respective findings of fact were reviewed, additional exhibits were received, the Court heard the argument of counsel, and then retired to consider the case. Upon consideration whereof, the Court has made the following decision to deny the petition for writ of mandamus.

I. Findings of Fact

The following facts were either stipulated or found by the greater weight of the evidence.

The Petitioner, Douglas W. Harold, Jr., is a Warren County resident taxpayer, who has a child attending Warren County High School, and he has filed this Petition for Writ of Mandamus demanding that the Supervisors provide sufficient funding to the School Board to complete the new elementary school and the new high school.

Defendant Warren County Board of Supervisors has five members, and it is the governing body of Warren County, Virginia, which is a political subdivision of the Commonwealth of Virginia. In January 1996, the Board of Supervisors was comprised of four new members, who were elected for the first time in November 1995, and one member of the former board. Defendant Warren County School Board is also a political subdivision of the Commonwealth of Virginia. Like the Board of Supervisors its membership changed as a result of the November 1995 elections.

On January 26, 1995, the School Board passed a resolution stating that there was a need for school facilities in Warren County. (Petitioner’s Exhibit 1.) On February 2, 1995, the Superintendent of Schools for Warren County provided an estimate to the School Board that the costs of a new elementary school and a new high school would be approximately $34,000,000.00. (School Board Minutes, 95-223.) By resolution dated February 2, 1995, the School Board requested that the Board of Supervisors contract a debt and issue school bonds in the amount of twenty four million dollars pursuant to Virginia Code § 15.1-227.41 to finance the school projects. (Petitioner’s Exhibit 2.)

On February 7, 1995, the county administrator informed the Board of Supervisors of the School Board’s resolution requesting a school bond issue of twenty four million dollars, which was a portion of the total projected cost of thirty four million dollars for the new elementary school and new high school. He also advised the Board of Supervisors that $5,000,000.00 for each school would be available from the Literary Fund. (Petitioner’s Exhibit 3.) The Board of Supervisors authorized the county administrator to submit an application to the Virginia Public School Au[469]*469thority (“School Authority”) in order to sell the bonds. (Petitioner’s Exhibit 3.)

On April 27, 1995, the School Board authorized the school superintendent to submit the Literary Fund loan applications to the Board of Supervisors for approval of the application and the authority to borrow the funds for the two projects. (School Board Minutes, 95-340.) By resolution dated May 16, 1995, the Board of Supervisors approved the applications for two separate five million dollar Literary Fund loans for the new two schools (Petitioner’s Exhibit 5), and it is the withdrawal of those applications and the termination of the contract for the new high school, about which the Petitioner complains.

By resolution dated October 12, 1995, the School Board resolved to make expenditures from its capital account, not to exceed ten million dollars, which was the amount of the Literary Fund loan, and to reimburse itself from the Literary Fund loan proceeds. (Petitioner’s Exhibit 7.) On October 12, 1995, the School Board also voted to request from the Board of Supervisors a $23,620,000.00 appropriation to the school construction fund. (School Board Minutes, 96-99.)

By resolution dated October 17, 1995, the Board of Supervisors resolved its intent to make expenditures for certain school projects, including a new elementary school and a new high school, and its intent to reimburse itself from the Literary Fund loan proceeds. In addition, the Board of Supervisors approved the request for the $23,620,000.00 appropriation required to fund the remainder of the construction of the two schools. (Defendants’ Exhibit 10.)

On December 28, 1995, the superintendent of schools informed the School Board of the bids for construction of the new high school, and that the low bid was $19,455,200.00 from Howard Shockey and Sons. The School Board voted to accept Shockey’s bid, and authorized its Chairman to sign the construction contract for the new high school with Shockey. (School Board Minutes, 96-185.)

The construction contract for the new high school (“Contract”) (Defendant’s Exhibit 12) was entered into December 28, 1995, between Shockey and the School Board. Neither the County, the Board of Supervisors, nor any of its individual members, were parties to the Contract. The Contract contained a contingency clause, which stated in pertinent part:

the Warren County School Board represents and agrees that financial arrangements have been undertaken in good faith, to fulfill the Owner’s [the School Board’s] obligations under the [470]*470Contract, through the pending Literary Fund loan applications to the Virginia Board of Education, previously authorized and approved by the Warren County Board of Supervisors and the Warr ren County School Board, and through other means of funding available to them. The Warren County School Board shall take all actions necessary to continue to prosecute the loan application to the Literary Fund, and obtain and consummate such loans without delay. This contract and the obligations of the Owner are contingent upon sufficient funding. Sufficient funding for the contract shall be deemed to exist if one or more of the currently-pending Literary Fund loan applications, as necessary to complete the funding of the Contract in conjunction with other available sources of funding, are approved and loan funding released by the Virginia State Board of Education at any time before or during calendar year 1997; provided, however, this is not the only means by which sufficient funds may exist.

Article 8 of the contract permits the School Board to terminate the Contract pursuant to the American Institute of Architects General Conditions, which are part of the Contract.

When the Contract was entered into, the Virginia State Board of Education had not approved the Literary Fund loans. On January 16,1996, the Board of Supervisors voted to withdraw their approval of the Literary Loan applications. (Petitioner’s Exhibit 9.) By letter dated January 17, 1996, the county administrator informed the State Department of Education of the Board of Supervisors’ withdrawal of approval of the loans and requested that the loan applications be withdrawn before the January 18, 1996, meeting of the Board of Education.

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38 Va. Cir. 467, 1996 Va. Cir. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harold-v-warren-county-board-of-supervisors-vaccwarren-1996.