Heinl v. City of Terre Haute

66 N.E. 450, 161 Ind. 44, 1903 Ind. LEXIS 134
CourtIndiana Supreme Court
DecidedFebruary 17, 1903
DocketNo. 19,788
StatusPublished
Cited by11 cases

This text of 66 N.E. 450 (Heinl v. City of Terre Haute) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heinl v. City of Terre Haute, 66 N.E. 450, 161 Ind. 44, 1903 Ind. LEXIS 134 (Ind. 1903).

Opinion

Jordan, J.

— Appellant, as plaintiff below, on December 11, 1901, instituted this action fox an injunction against the city of Terre Haute, Henry C. Steeg, mayor; William K. Hamilton, comptroller; Frank T. Borgstrom, treasurer; Patrick B. Walsh, Silas C. Beach, and Joseph W. Lauer, members of the board of public works of said city. On February 15, 1902, appellant filed an amended and supplemental complaint against all of the aforesaid defendants. Separate demurrers were sustained to the complaint for insufficiency of facts, and, plaintiff refusing to plead further, judgment was rendered against him upon the demurrer, from which he appeals, and predicates error on the rulings of the court in sustaining each of the defendants’ respective demurrers. The following are the facts as alleged in the amended and supplemental complaint which are material for our consideration in determining the questions involved in this appeal.

Appellant is a resident voter and taxpayer of the city of Terre Haute, Yigo county, Indiana, and the said city is indebted in the sum of $406,000 — $351,000 of this amount it is alleged is evidenced by outstanding interest-bearing bonds of the said city; $55,000 by outstanding interest-bearing notes executed by the school trustees of the school city of Terre Haute in the name of the latter corporation, that amount being an indebtedness contracted and incurred by said school city in the purchase of necessary grounds and the erection thereon of public school buildings, within and for said school city. It is alleged that the total value of the taxable property of the city of Terre Haute is $20,870,000, and the limit of its indebtedness under the Constitution is $417,000. In the year 1895 the city of Terre Haute instituted proceedings to condemn a strip of ground constituting a part of the terminal yard of the Evansville & Terre Haute Railroad Company. Said [46]*46ground was to be taken and used for a public street. At the time this injunction suit was commenced said condemnation proceedings were pending on appeal in the Parke Circuit Court, and had reached a stage where, upon a trial by jury, a verdict for $60,000 damages had been returned against said city and in favor of said railroad company. The complaint further alleges: “That before the said city of Terre ITaute can proceed with and consummate such condemnation or appropriation, it is necessary for it to pay or tender to the said Evansville & Terre ITaute Railroad Company the additional sum of $38,500, which last-mentioned sum, together with the $21,500 heretofore paid to the clerk of the circuit court of Vigo county, Indiana, will make the amount of .said verdict, to wit, $60,000.” After the return of this verdict, and before any judgment had been rendered thereon, on December 4, 1901, the common council of the said city adopted an ordinance authorizing the issue and sale of $39,000 of negotiable bonds of said city in order to raise money to tender or pay the amount of damages so awarded by the jury. It is alleged that the board of public works of the city has never taken any jurisdiction of or considered the condemnation proceedings in any manner or for any purpose; that the said council has, without right or authority, since the 1st day of July, 1899, at which time a new charter for the city went into effect, actually controlled said condemnation proceedings. It is further alleged that such proceedings wore pending in the circuit court on an appeal taken by the railroad company from an assessment of damages in its favor by the city commissioners when the said city charter took effect on the 1st day of July, 1899. It is shown that the damages awarded to the railroad company by the city commissioners were $21,500, and that the damages on appeal to the circuit court were increased and assessed by the jury at $60,000. The amount of damages assessed and allowed by the city commissioners is [47]*47shown to have been tendered and paid into court by the city, and it is alleged that appellants are threatening to 'cause and allow a judgment to be rendered against the city of Terre ITaute o.n the verdict of the jury by the Parke •Circuit Court, and are about to issue, negotiate, and sell $39,000 of city bonds as heretofore stated.

. The supplemental complaint discloses that since the filing of the original complaint judgment had been rendered upon the verdict of the jury in'-the Parke Circuit Court over the objections and exceptions of the railroad company ; that said company is prosecuting a term-time appeal 'from such judgment, and has filed its appeal bond, and that since the rendition of the judgment, to wit, on Eebruary 10, 1902, the common council of the said city, recognizing the invalidity of the former ordinance, passed and adopted a new one in lieu thereof, authorizing the issuing and sale of $39,000 of the city’s negotiable bonds for the purpose of raising money to apply on said judgment. The prayer of the complaint is that the defendants be commanded and enjoined to exercise their right and option to pay the costs of said' defendant city, and that said defendants Walsh, Beach, and Lauer be perpet‘ually enjoined from exercising their right and option to procure or allow a judgment to be rendered upon said verdict in the Parke Circuit Court, and that defendants Hamilton, Borgstrom, and Steeg, and each of them, .be perpetually enjoined from executing, ‘ negotiating, selling, and delivering any of the said bonds attempted to be au'tliorized and provided by the ordinance of December 4, 1901; and the plaintiff demands all. other and proper relief.

Three points or contentions are advanced and relied upon by appellant to establish the inyalidity of the ordinance authorizing the issue and sale of-the bonds, upon .either of which, it is insisted, the sufficiency of the complaint to entitle him to the relief demanded ought to be sustained. It is claimed: (1) That the/amount of bonds [48]*48which the city proposes under the ordinance to issue and negotiate for the purpose intended will increase its indebtedness beyond the limit prescribed by §1, article 13, of. the state Constitution; therefore it is argued that for this reason alone the ordinance adopted by the common council is invalid, and ought not to be enforced; (2) that the proposed issue and sale of the bonds for the purpose in view is not authorized by the provisions of the act of the legislature of 1899, under which the city of Terre Haute is governed and controlled; (3) that the issue and sale of the bonds in dispute is premature.

As previously shown, it is averred in the complaint that the city of Terre Haute is indebted in the sum of $406,000, but in making up this amount of indebtedness the plaintiff in his complaint assigns or credits as a part thereof the sum of $55,000 of an indebtedness evidenced or represented by interest-bearing promissory notes executed by the trustees of the school city of Terre Haute in the name of said school city, which latter indebtedness, as is shown, was contracted by the school city in the purchase of necessary grounds and the erection thereon of public school buildings. The argument is advanced that the school city was not authorized by law to contract this ' indebtedness, and through its trustees execute in its name the notes in question ; therefore it is contended that under the circumstances there is an implied liability upon the part of the civil city to pay said indebtedness, and that the same must be considered as an indebtedness of the civil city in making up the amount to which it is limited by the provisions of the Constitution, supra. There is no merit or force in this contention.

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Bluebook (online)
66 N.E. 450, 161 Ind. 44, 1903 Ind. LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heinl-v-city-of-terre-haute-ind-1903.