Jones v. Pensacola

13 F. Cas. 1004, 6 Chi. Leg. News 264
United States Circuit Court for the Northern District of Florida·Decided July 1, 1873·No. Case No. 7,488·Published

Opinion

FRASER, District Judge.

The bill in this case is filed to enforce the payment of the contents of four hundred and eighty-two coupons of $17.50 each, for interest upon bonds issued by the city of Pensacola, in conformity to its charter, approved March 2, 1839, and the amendments thereof. The legality of the issue of said bonds is not denied. A demurrer for want of equity is filed to the bill. In support of the demurrer it is contended: 1. That the complainant has a plain, adequate, and complete remedy at law. 2. That said corporation has no legal authority to levy a tax. 3. That the corporation, the city of Pensacola, which issued the bonds, has been dissolved, and the defendant corporation, the city of Pensacola, is a new corporation, and is not responsible for the debts of the old. The bill does not allege that any assets of the old corporation remain, out of which any part of the debt can be made.

It will be well, first, to consider the last ground of demurrer, for if the debtor corporation no longer exists, then this court has no jurisdiction, there being no defendant against whom it can proceed to make or enforce a decree. The 30th section of the act, approved August 6, 1808 (Laws Fla. 1868, p. 118), provides that “it shall be lawful for any previously incorporated city to re-organize its municipal government under the provisions of this act, by a voluntary surrender of its charter and privileges, and by an organization under this act.” The city of Pensacola, as organized, under this, charter of March 2, 1839, did voluntarily surrender such charter, and organized a city government by the same name, under the act of 18GS, in compliance with the 30th section thereof. The 32d section of the act of 1868 repeals all laws conflicting with said act. The city of Pensacola having surrendered its charter under the act of 1839, did that surrender work a dissolution of such corporation? Did the act of 1868 create a new corporation; or was an’organization under that act a prolongation and continuation of the old? One of the modes by which a corporation may be dissolved, is by the surrender of its “franchise of being a body corporate.” Such franchise is created by charter, and the surrender of the “charter and privileges” as required by the act of 1868, is tantamount to a- surrender of such franchise. Upon such surrender accepted by the king in England, or authorized by the legislature in this country, a corporation is dissolved. Willcock, Mun. Corp. pt. 1, § 852. When once dissolved, it can not be revived. Any subsequent grant must operate as a new creation. Id. §§ 858, 875. Though the surrender of the old charter, and the organization under the new, may have been made so nearly together that the acts appear to be simultaneous, yet the right to organize under the new grant is made dependent upon -the surrender of the old; and there must have been a moment when the thread of perpetuity was broken, and being once broken, the spinning of a new thread can not make both one. The organization under the new charter must be considered a new creation, and not a revival of the old grant, which was surrendered and repealed. Such was clearly the intention of the legislature, as drawn from the words of the act. Though such legislation may be reckless and inconsiderate, the language of the act is too plain to admit of any other judicial interrelation.

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Jones v. Pensacola, 13 F. Cas. 1004, 6 Chi. Leg. News 264 (circtndfl 1873).

13 F. Cas. 1004 (Jones v. Pensacola) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.