J. H. Tillman Co. v. City of Seaside

25 P.2d 917, 145 Or. 239, 1933 Ore. LEXIS 11
CourtOregon Supreme Court
DecidedSeptember 21, 1933
StatusPublished
Cited by10 cases

This text of 25 P.2d 917 (J. H. Tillman Co. v. City of Seaside) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. H. Tillman Co. v. City of Seaside, 25 P.2d 917, 145 Or. 239, 1933 Ore. LEXIS 11 (Or. 1933).

Opinion

BAILEY, J.

This an action instituted by the J. H. Tillman Company, a corporation, against the city of Seaside, to recover damages alleged to have been sustained by the non-payment of warrants issued by the city upon special funds to be raised by the levy and collection of assessments upon the property benefited by the improvement of certain streets in that city.

Before the trial of the case the parties stipulated that the facts and the law in each of the twenty-five separate causes of action were substantially the same; that there should be tried before the court, without the intervention of a jury, the fourteenth cause of action contained in the second amended complaint, hereinafter referred to as the complaint, and that if the judgment should be for the plaintiff on the fourteenth cause of action, there should also be entered in favor of the plaintiff and against the defendant like judgments in the remaining causes of action.

*241 The fourteenth cause of action alleges the corporate character of the plaintiff and of the defendant; that the council of the city of Seaside was empowered to lay sewers and improve streets and to defray the cost of such improvements by assessments against the property benefited thereby; that pursuant to said authority the council on March 7, 1922, passed an ordinance of determination to improve a part of First avenue in Seaside and provided that the total cost of such improvement should be paid by special assessments against the property benefited thereby; that thereafter by resolution the council directed the mayor and the auditor of said city to enter into a contract with plaintiff for making the improvement; and that pursuant to said resolution such a contract was duly made and entered into by the plaintiff and the defendant.

It is further alleged that the plaintiff duly constructed and completed the improvements and performed all the conditions of the contract on its part; that said work was duly accepted by ordinance of the city of Seaside; that pursuant to various resolutions of: the council, certain warrants amounting to $7,740.14 were issued by the defendant to the plaintiff, between and including June 9, 1922, and November 22 of the same year; that no part of these warrants has been paid; and that on November 28, 1922, plaintiff duly presented the warrants to the treasurer of the city of Seaside and demanded payment thereof, which was refused for want of funds.

Plaintiff avers that the charter of the city of Seaside specifies that no part of the cost of street improvements shall be paid-from the general funds of •the city, but that the entire cost thereof shall be de *242 frayed from special funds therefor provided by the city by special assessments which the charter requires the city to levy and collect for that purpose against the property benefited by the improvement. In July, 1922, according to the complaint, the city found and declared the total cost of the improvement of First avenue to be $9,120.94, and appointed assessors to apportion and assess the same against the property, which was done, and assessments were levied in the manner prescribed by the charter, against the property so benefited.

The complaint further alleges that there had been paid to the city of Seaside from and on account of the unbonded part of said assessment approximately $5,-531.35, which it was the duty of the defendant to deposit in a special fund and apply to the cost of said improvement, including plaintiff’s warrants; that the defendant had failed to create such special fund and had not applied all of said collected assessments toward the cost of said improvement but had diverted and appropriated to other purposes a large part thereof, to wit: $4,150.55; and that approximately $3,589.55 of said unbonded assessments remained unpaid, which the defendant had not collected and had not made, and was not then making, any attempt to collect. It is further charged that by reason of the neglect of duty on the part of defendant, in failing to create such special fund, in failing to enforce collection of street assessments, and in failing to apply money received by it from such assessments to the cost of said improvement, and by reason of the misappropriation of said special fund, the plaintiff is damaged in the sum of $7,740.14, with interest thereon from November 28, 1922, at six per cent per annum.

*243 All the outstanding warrants issued for the improvement referred to in the fourteenth cause of action were, at the time of the trial, owned by the plaintiff, and it was admitted by counsel for the defendant that the city of Seaside had never notified the plaintiff to present these warrants for payment and that no attempt to collect any of the unpaid assessments had been made by the city.

“In this state it is now the settled law that where the expense of improving a city street is to be paid from a special fund, created by assessment on abutting property, a failure of the municipality to comply with any of the requirements of the charter essential to supplying such fund, or an unreasonable delay in enforcing such provision, or collecting and paying over the money, gives the contractor a right of action ex delicto against the corporation for damages, in which he is entitled to recover the amount due under the contract with interest, notwithstanding a provision therein that he shall look for payment only to the special fund, and will not require the municipality by any legal process, or otherwise, to pay the same out of any other fund”: O’Neil v. Portland, 59 Or. 84 (113 P. 655).

See also: Northern Pacific Lumber Co. v. East Portland, 14 Or. 3 (12 P. 4); Portland L. & M. Co. v. East Portland, 18 Or. 21 (22 P. 536, 6 L. R. A. 290); Commercial National Bank v. Portland, 24 Or. 188 (33 P. 532, 41 Am. St. Rep. 854); Little v. City of Portland, 26 Or. 235 (37 P. 911); Jones v. City of Portland, 35 Or. 512 (58 P. 657); Dennis v. City of McMinnville, 128 Or. 101 (269 P. 221).

The appellant in this case, while acknowledging the foregoing as being the settled law in this state, contends that since this is an action ex delicto it is barred by the statute of limitations, section 1-206, Oregon *244 Code 1930, which requires actions ex delicto to be brought within two years. In support of this contention it is stated by counsel for the appellant that it is also the settled law in this state that when a municipality with charter provisions such as those of Seaside fails or neglects for a period of six months after the completion of a public improvement to employ the necessary measures to collect therefor or fails to collect the special assessments levied to defray the costs of said improvement and pay the same to the contractor on demand, the municipality immediately becomes liable to the contractor for the face value of the special fund warrants; and that the cause of action in this case accrued to the plaintiff within six months from the completion of the contract.

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Bluebook (online)
25 P.2d 917, 145 Or. 239, 1933 Ore. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-h-tillman-co-v-city-of-seaside-or-1933.