Hopson v. Oliver

298 S.W. 489, 174 Ark. 659, 1927 Ark. LEXIS 590
CourtSupreme Court of Arkansas
DecidedJuly 4, 1927
StatusPublished
Cited by5 cases

This text of 298 S.W. 489 (Hopson v. Oliver) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hopson v. Oliver, 298 S.W. 489, 174 Ark. 659, 1927 Ark. LEXIS 590 (Ark. 1927).

Opinions

The Western Clay Drainage District was created by special act No. 368 of the 1907 General Assembly (Acts 1907, page 890). By paragraph (a) of 8 of the act a general assessment was levied on the real property in the district for the purpose of paying the general expenses, the same to be paid annually. The act further provided that the territory of the district might be subdivided into subdistricts to construct such ditches and laterals as would afford special benefits to the territory *Page 661 in each subdistrict, to be paid for by the levy of special assessments against the lands therein. Five of such subdistricts were organized and special assessments were levied in each, and bonds were issued against these special assessments, and the plans of the improvement were executed by constructing the various ditches and drains.

Appellee Oliver is the owner of lands in subdistricts numbered 1, 2, 3 and 5, and he filed a petition in behalf of himself and all other landowners, in which he alleged that the commissioners of the district were not keeping the ditches cleared of all obstructions, as the act required them to do, and he prayed a writ of mandamus requiring them to perform this duty. It was prayed that the commissioners of the district he ordered and directed to levy a special assessment upon each item of property in each subdistrict in proportion to the benefits estimated to have accrued by reason of the construction of the improvement for which each subdistrict was formed.

The commissioners filed an answer, in which they admitted that the act directed them to keep the ditches clear of obstructions, and that willows had grown up in the ditches and sandbars had formed which obstructed the flow of water; but they alleged their inability to clear the ditches, for the reason that all assessments of benefits against the lands had been pledged to the payment of the bonds of the respective subdistricts, and that all the money arising from the sale of the bonds had been expended in the construction work, and that there was no provision in the law for the assessment of additional benefits throughout the district or the subdistricts for the purpose of clearing out the canals.

It was alleged, and the secretary of the district testified, that in subdistrict No. 1 benefits had been assessed amounting to $124,721 and bonds had been issued in the sum of $100,000, of which $55,000 were outstanding and unpaid; that in subdistrict No. 2 benefits amounting to $163,929 had been assessed and bonds amounting to $130,000 had been issued, of which $87,000 were outstanding *Page 662 and unpaid; that in subdistrict No. 3 benefits amounting to $52,885 had been assessed and bonds amounting to $50,000 had been issued, of which $40,000 were unpaid; that in subdistrict No. 4 benefits amounting to $37,280 `were assessed and bonds amounting to $30,000 were issued, the amount of bonds unpaid not being shown; and in subdistrict No. 5 benefits assessed amounted to $141,427 and bonds in the sum of $110,000 were issued, of which $100,000 were unpaid. It was further shown that assessments against the benefits were being levied as follows: In subdistricts 1 and 2, nine per cent., and in subdistricts 3, 4 and 5, ten per cent.

There was neither allegation nor proof on the part of the landowners to show what the cost of clearing out the ditches would be, nor was it alleged that the commissioners have funds available for that purpose; on the contrary, the petitioner admits that the commissioners are not in possession of such funds, and he explains the purpose of this proceeding to be to require that these funds be raised by special assessments levied for that purpose.

The court granted the relief prayed, and directed that the commissioners ascertain the amount necessary to clear the ditches, and to levy special assessments upon each item of property in each subdistrict in proportion to the benefits that have heretofore been estimated to accrue thereto by reason of the improvement for which the subdistrict was formed, in a sufficient amount and for the purpose of keeping the drains and levees in each subdistrict clean and in repair' and that the commissioners make such special assessments as frequently and at such times as shall be necessary to keep such ditches and levees in repair. The district has appealed from that judgment.

The first question discussed is the authority of the commissioners to keep the canals clean of this there appears to be no doubt. The original act charges the commissioners with this duty, and by 17 of the amendatory *Page 663 act No. 278, passed at the 1909 session of the General Assembly (Acts 1909, page 820) the duty is reimposed.

The difficulty appears to be that the money is not available for that purpose. It is pointed out that subdivision (1) of 9 of the act of 1907 provides that "this law shall be liberally construed to give to said assessment list and the general assessment levied herein the effect of a bona fide mortgage for a valuable consideration, and a first lien upon the said property, as against all persons having any interest therein," and that the pledge of the assessed benefits under the provisions of the act for the payment of the bonds issued in the several subdistricts is, in effect, in law a pledge and assignment of a mortgage as collateral security for the payment of said bonds, and that the revenues of the district are required for this purpose and must be first so applied.

We think counsel is correct in his construction of the act.

Paragraph (p) of 8 of the act of 1907 reads as follows: "If, after the assessment and levy upon the property in any subdistrict shall have been made and the improvement therefor completed, or partially completed, the board of directors of said corporation shall be of opinion that the improvement made or designed is insufficient in size, width, depth, extent, or otherwise, or if the sums levied be insufficient to pay the cost of making the improvement, a further levy or levies may be made, in all respects as in the case of an original levy, upon the property situate in the said subdistricts, in order; and of sufficient amount, to make the improvement sufficient, or to complete the payment therefor; but the aggregate amount of such special assessments to be paid in any one year shall not exceed ten per centum of the amount of the benefits assessed upon such property.

It thus appears that there is a positive inhibition against the levy of an aggregate amount of such special assessments to he paid in any one year in excess of ten per centum of the amount of benefits assessed upon said property, and that subdistricts 1 and 2 are levying nine *Page 664 per centum and subdistricts 3, 4 and 5 ten per centum of this assessment. Districts 3, 4 and 5 cannot therefore increase their levy for any purpose in any one year, and subdistricts 1 and 2 could only increase their levy one per centum, and it is not alleged or shown that this increase would suffice to perform the order of the court.

In this connection it may be said that revenue which is raised in subdistricts 1 and 2 could not be used for the purpose directed by the court in the other subdistricts.

Appellee insists that this limitation applies only to assessments intended to pay construction costs and does not apply to maintenance costs, and that the act contemplates that the canals be kept in repair, and that the costs of these repairs may, and in time probably will, amount to many times the assessed benefits, and of even many times the value of land, and that there is no limitation on the cost of repairs.

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Bluebook (online)
298 S.W. 489, 174 Ark. 659, 1927 Ark. LEXIS 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hopson-v-oliver-ark-1927.