Hellman v. Shoulters

45 P. 1057, 114 Cal. 136, 1896 Cal. LEXIS 869
CourtCalifornia Supreme Court
DecidedSeptember 1, 1896
DocketL. A. No. 8
StatusPublished
Cited by96 cases

This text of 45 P. 1057 (Hellman v. Shoulters) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hellman v. Shoulters, 45 P. 1057, 114 Cal. 136, 1896 Cal. LEXIS 869 (Cal. 1896).

Opinion

Van Fleet, J.

After a re-examination of this case by the court in Bank, we are satisfied with the views expressed in the opinion of Mr. Justice Temple, filed upon the hearing of the case in Department Two; and that opinion, with the suggestions which we deem it proper here to add in response to the petition for a hearing in Bank, will stand as the opinion of the court.

1. Counsel strenuously contends that the bonds in question cannot be considered as the bonds of the municipality, but that they are, in legal effect, the obligations of the several property owners, or are not the obligations of any one. We cannot see any distinction between these bonds, and those considered in the case of Lent v. Tillson, 72 Cal. 404, referred to in the opinion in Department. In each case they are made payable only out of a special fund to be raised by assessment on the property benefited; it is expressly declared in each act that the city should in no event be liable upon them, and no personal liability for their payment is by either act imposed on any one. The fact that in one case the bonds are to be paid generally out of a fund raised by assessment on all the property benefited, and in the Other case are to. be paid severally by assessment on each particular lot, cannot affect the question of legislative power. The burden upon the property is precisely the same in either case. Liens upon property, where no person is bound to perform the obligation, are common in our law (Civ. Code, sec. 2890), especially in cases of taxation; and in cases of this character no personal liability can constitutionally be imposed upon the property owner. (Taylor v. Palmer, 31 Cal. 241.)

But, if these bonds could not be considered municipal obligations, the result would be the same. So far as the questions in this case are concerned, the bonds really cut no figure, and might as well be eliminated from the [140]*140case. The effect of the act in question is precisely the same, so far as the property owners are concerned, as if it had provided that any delinquent assessment of fifty dollars or more should be payable in annual installments for such number of years, not exceeding ten, as the council should fix, with interest at a rate to be determined by the council, and that, upon default in the payment of any installment, the property should be sold to pay the assessment. Since the legislature might constitutionally have provided (as it did provide in the original Vrooman apt) that the property should be sold at once to pay the entire delinquent assessment, the owner cannot complain of a provision allowing him an extension of time within which to pay any .installment. The only possible question could be as to the authority of the council to fix the rate of interest. We agree with counsel for respondents that the imposition of interest may well be supported as a legitimate penalty for delinquency, from which the owner may protect himself by paying the assessment when due. As to fixing the rate of interest, that, as said in the opinion in Department, is a matter of contract merely. The city council is authorized to contract for the doing of the work, and must, in its resolution of intention, fix the rate of interest. This is one of the terms upon which bids are invited, and presumably enters into the price bid. If the rate of interest as fixed is high, the presumption is that the price bid will be proportionally low. We can, therefore, see no such inequality as to affect the uniform operation of the law, or to distinguish this case from the ordinary class of municipal contracts for street work.

2. As to the publication of the ordinance or resolution of intention, it may be added that appellant’s contention is practically disposed of by the case of Los Angeles v. Teed, 112 Cal. 319.

3. Counsel for appellant contends that the notice of sale published by the treasurer -was insufficient, because it did not state the amount of the costs and penalties. This point is made for the first time in the petition for [141]*141rehearing, and the respondents have had no opportunity to reply to it. This fact itself would be a sufficient reason for ignoring it. Moreover, it must be remembered that this is a suit in equity for an injunction to restrain a sale for the collection of a tax; and no such injunction will lie to correct mere errors or irregularities in the proceedings, even such as would render the sale void—certainly not where the plaintiff makes no offer to pay what is due. (Easterbrook v. O’Brien, 98 Cal. 671.)

The judgment and order are affirmed.

McFarland, J., Garoutte, J., Henshaw, J., and Temple, J., concurred.

The following is the opinion above referred to rendered in Department Two, April 14, 1896.

Temple, J.

This action was brought to enjoin the sale of property to pay street improvement bonds. The case was submitted to the trial court upon an agreed statement and upon evidence taken and certain stipulations. Judgment was rendered against plaintiff, and the appeal is from the judgment and an order refusing plaintiff a new trial.

The general question involved in the appeal is whether the defendant Shoulters, as treasurer, had authority to sell the property for the purpose mentioned.

That he had no power to sell is contended: 1. Because the act under which the proceedings were had is unconstitutional and void; and 2. On the ground that the statute, if valid, has not been complied with. It is also claimed that incompetent evidence was admitted at the trial over the objections of appellant.

The proceedings for the street improvement, to pay for which the bond in question here was issued, were inaugurated by ordinance passed April 13, 1891, by the city council of Los Angeles declaring the intention of the council to improve Eighteenth street. The procedure was under an act of the legislature passed March 17, 1891, and entitled as follows:

[142]*142“An act to amend ,an act entitled ‘An act to provide for work upon streets, lanes, alleys, courts, places and sidewalks, and for construction of sewers within municipalities,’ approved March 18, 1885, by adding thereto an additional part numbered 4, consisting of sections 38, 39, 40, 41, 42, 43, and 44, relative to a system of street improvement bonds.”

Among other things section 40, which that act purports to add to the Vrooman act of 1885, provides that, when the cost of such improvement as estimated by the city engineer will be greater than two dollars per front foot, bonds shall be issued to represent the cost of the work. The bonds shall be serial and extend over a period not to exceed ten years, and payable in equal annual installments, with interest payable semi-annually not to exceed ten per cent per annum. The installments were to be paid to the city treasurer. Under no circumstances was the city to be liable.

The next section provides that when this method of paying for the improvement is pursued, the determination that bonds shall be issued' shall be stated in the notice of intention and in the resolution ordering the work, in the resolution of award, and in all notices of the proceedings required.

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Bluebook (online)
45 P. 1057, 114 Cal. 136, 1896 Cal. LEXIS 869, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hellman-v-shoulters-cal-1896.