Kenney v. Bank of Miami

170 P. 866, 19 Ariz. 338, 1918 Ariz. LEXIS 86
CourtArizona Supreme Court
DecidedFebruary 16, 1918
DocketCivil No. 1570
StatusPublished
Cited by11 cases

This text of 170 P. 866 (Kenney v. Bank of Miami) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenney v. Bank of Miami, 170 P. 866, 19 Ariz. 338, 1918 Ariz. LEXIS 86 (Ark. 1918).

Opinion

ROSS, J.

This action was instituted by the Bank of Miami to compel the town of Miami and J. D. Kenney to interplead and litigate their respective claims to $1,874.71, held on deposit by the bank. It is shown by the complaint that this fund was placed with the bank by the town as a checking account; that J. D. Kenney, as trustee of the town, claims it “by virtue of an alleged order of the board of supervisors of the county of Gila, state of Arizona, purporting to have appointed said Kenney as trustee of the town”; that the town refuses to recognize the validity of the order of the board of supervisors, maintaining that it was wholly void by reason of gross illegality in its procurement; that the bank had been warned by the town authorities not to pay said fund to Kenney ; that Kenney, acting as trustee, was attempting to secure said fund by drawing his check against the bank; that the bank is ignorant of the respective rights of the town and Kenney; that it does not know what course to pursue; that it has no remedy at law, and that it fears, unless given relief, that it will be subjected to a multiplicity of suits; that it has no interest in said fund whatsoever, being merely a stakeholder thereof.

To this complaint Kenney interposed a general demurrer, the overruling of which he assigns as error. He insists that the complaint shows upon its face that the town of Miami is no longer a municipal corporation. It may be conceded that the allegation of the appointment of Kenney as trustee admits that an order of the board of supervisors was made disincorporating the town of Miami, but the admission that such an order was made would not confess its regularity or legality, especially when controverted by the town, so as to make it the plain legal duty of the bank to pay the fund deposited with it by the town to Kenney. It must be remembered that the powers and duties of the board of supervisors are purely statutory, and that its determination and orders, to be binding and conclusive, must be clearly within its jurisdiction as fixed by law.

[341]*341“The appropriate allegations in a bill of interpleader are, in purport: (1) That two or more persons have a claim against the plaintiff; (2) that they claim the same thing; (3) that the plaintiff has no beneficial interest in the thing claimed; and (4) that he cannot determine without hazard to himself to which of the defendants the thing of right belongs.” 15 R. C. L. 229, § 12.

The town of Miami, vigorously contesting the legality of the board’s order of disineorporation and demanding of the bank the return of the funds that it had placed with it, the appellee bank might well have entertained serious doubts as to which the money'it held belonged and should be paid; for, under" the circumstances, if the bank paid the money to Kenney, it might later, if the order of the board of supervisors should be declared to have been entered without jurisdiction, have to account for the funds to the town of Miami. The court did not err in overruling the demurrer to complaint in interpleader.

The appellant, Kenney, and the town of Miami each set forth in his answer to the complaint the ground upon which he laid claim to the funds paid into court by the bank. Appellant relies entirely upon the order of the board of supervisors made and entered in its minutes February 8, 1916, purporting to disincorporate the municipality of Miami, and to appoint appellant as trustee with authority to wind up its affairs, etc. The appellant makes no contention that, as a matter of fact, the petition contained the requisite number of qualified signers, but relies solely upon the finding of the board of supervisors:

“That said petition contains the signatures of more than two-thirds of the persons paying property tax within said town of Miami under the provisions of chapter 2, title 7, of the Revised Statutes of Arizona in the preceding year and residing within such town, and such is found to be the fact.”

He insists that this finding is conclusive and may not be disproved by parol evidence, • especially in this kind of action.

The appellee town, while admitting an order of disineorporation was made, contends that the board acted without jurisdiction for the reason that the petition filed with the board asking for disineorporation did not contain the signatures of two-thirds of those persons paying property tax within the town of Miami in the preceding year and residing within the [342]*342town at the time of filing the petition. Amplifying this allegation, appellee gives the names of 22 persons appearing upon the petition who, it is alleged, did not sign the petition, 15 who signed it under fraudulent representations or through duress, several who signed the petition early in 1915, but who had changed their minds and were against disincorporation on February 8, 1916, when the petition was acted upon, that some 36 of the signers were not residing in the town at the time the board acted, and that two petitions were filed with the board upon which many names were duplicated.

We think the contention of the appellant that the order of the board of supervisors disincorporating the town is conclusive and final depends upon the terms of the statute authorizing the board to act..

If the law imposes the duty upon the board to ascertain and pass upon the facts conferring jurisdiction upon it, a finding and decision by it of the existence of those facts is final- and conclusive. But, where the law makes it an indispensable condition that a certain fact or facts exists before the board can act, and fails to clothe it with the power and machinery to find the facts, its determination is not final and conclusive.

The whole law under which the board acted is contained in section 1880 of the Civil Code, and reads as follows:

“The county supervisors of the county in which any such town is situated, may, upon the petition of two-thirds of those persons paying a property tax within such town, under the provisions of this chapter, in the year preceding, and residing within such town, disincorporate such town and appoint a trustee with authority to wind up the affairs of the corporation, sell and convey its property, real and personal, pay the debts of the town, and return the surplus of the proceeds of the property of the town into the county treasury, to be there disposed of for the improvement of roads in the vicinity wherein such town is situated.”

This statute makes it a condition precedent to any order of disincorporation by the board that a- “petition of two-thirds of those persons” described therein shall be filed with it. A petition of less than two-thirds would not confer jurisdiction of the subject matter, and, since the law fails to enjoin the duty or power upon the board to find and settle that indispensable fact, any determination made by the board would [343]*343not be final and conclusive, because it is not so declared by the law. The distinction alluded to may be illustrated by reference to section 1822 of the Civil Code, providing for the incorporation of cities and towns. In Faulkner v. Board of Supervisors, 17 Ariz. 139, reading at page 142, 149 Pac. 382, we said:

“The board of supervisors are constituted by this statute the agents of the state with authority, upon being satisfied that the conditions therein prescribed exist, to issue the state’s license to petitioning communities endowing them with certain of the powers and prerogatives of the sovereign.

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Bluebook (online)
170 P. 866, 19 Ariz. 338, 1918 Ariz. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenney-v-bank-of-miami-ariz-1918.