Lough v. City of Estherville

98 N.W. 308, 122 Iowa 479
CourtSupreme Court of Iowa
DecidedJanuary 29, 1904
StatusPublished
Cited by18 cases

This text of 98 N.W. 308 (Lough v. City of Estherville) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lough v. City of Estherville, 98 N.W. 308, 122 Iowa 479 (iowa 1904).

Opinion

Bishop, J.

The plaintiff, A. P. Lough, sues for himself and all other taxpayers of the city of Esthervilie. The defendants, in addition to the city of Esthervilie, are E. J. Breen, O. H. Myhre, E. Albro, E. LI. Khodes, J. H. Wilson, Joe Hardie, J. M. Barker, and S. A. Keen. It is alleged that, at the time of the happening of the matters complained of, the said Breen was mayor, the said Myhre vras treasurer, and the other defendants, except Keen, were members of the city council of said city of Esthervilie. In the petition originally filed it was alleged that the defendant city at all times in question was indebted in excess of the constitutional limit; that prior to the commencement of this action certain bonds had been issued by the city of Esther-vilie, wrongfully and unlawfully, and as the result of a conspiracy entered into between the defendants, the officers of said city. The pleading also contains an allegation to the effect that demand for suit in the name and on behalf of the city had been made and refused. In the prayer it was demanded that payment of the bonds so issued be enjoined; [481]*481tbat such bonds be ordered surrendered up and canceled, etc. Tbe substituted petition which was filed by plalntlfl:, following the ruling on the demurrer, and which is the pleading we now have before us for consideration, states facts in substance as follows: That, at the time of the happening of all the matters complained of, the city of Estherville was indebted in an amount in excess of the constitutional limit, and had no available funds with which to pay such indebtedness. That in May, 1899, the defendants Breen, lihodes, Albro, Wilson, Barker, and Hardie, being, respectively, the mayor and members of the city council of said city, entered into a conspiracy for the purpose of wrongfully and unlawfully imposing a liability upon said city in further excess of the constitutional debt limit, and did fraudulently and unlawfully issue warrants upon the treasury of said city to various persons and for various amounts, aggregating,, in the whole, the sum of $12,000. That each of such warrants were of a single issue and were issued by said city, through its said officers, for the purpose of raising money to pay the purchase price of lands tendered by the city to a railway company for depot grounds, shops, etc., in said city. That, in furtherance of the unlawful and fraudulent conspiracy so entered into, said defendants procured all the warrants so issued to be placed in the hands of one C. W. Grim, to assist and enable him to obtain judgment against said city for the dull amount thereof, and that, in furtherance of said conspiracy, he (said Grim) did thereafter commence an action and obtain judgment by default iin the district court of Em-met county on said warrants, the officers of the city wrongfully refusing to appear and defend said action, or permit the city solicitor to do so. That, in furtherance of such conspiracy, twenty-year bonds of said city were wrongfully and unlawfully issued by the said officers thereof in an amount equal to the amount of said judgment, which bonds were negotiated and s’old to the defendant Keen, a resident of the city of Chicago, Ill. That the proceeds of such bonds were [482]*482used at once to satisfy. said judgment. Tbe allegation is made that tbe sale of said bonds to Keen took place more tban three months prior to the bringing of this action, and that said Keen has sold and transferred all such bonds to innocent purchasers, who now own and hold the same. That the city is now paying interest thereon, and will be compelled to pay the said bonds in full when presented, and this plaintiff and other taxpayers will be taxed to raise funds for that purpose. Service of a notice to bring suit, and a refusal on the part of the officers of the city to comply therewith, is alleged. The demand of the prayer is that personal judgment be rendered against defendants Breen at al., in favor of plaintiff and other taxpayers herein, or in favor of the defendant city, for the amount-of the bonds issued as alleged, with interest thereon, and such other relief as may seem just and equitable.

This pleading is attacked by the demuiTer filed thereto for the reason, among others, that the facts stated do not entitle plaintiff to the judgment demanded. Consideration of 1. actions: relief. the questions which are fairly included in such general ground of’demurrer, must as we think, work a disposition of the case. It will be observed that the petition, as now presented, sets forth a demand at law, pure and simple. It is an action predicated solely upon tort allegations, and relief is asked simply in the way of a money judgment. That a plaintiff who has commenced his action in equity — setting forth facts under which he is entitled to proceed in equity — may, by subsequent pleading, so change the fact averments and his demand for relief as to convert his action into one at law, and vice versa, is not questioned. Newman v. Association, 76 Iowa, 56, is authority for such procedure. See, also Weaver v. Kintzley, 58 Iowa, 191. And if no motion is made to transfer the cause to 1ho proper docket for trial, it may be heard and disposed of in the forum where commenced. This is a rule of the statute (Code section 3437). But -while the method of procedure peculiar to the court in which the trial is had will be observed [483]*483in. the conduct thereof, it must'be manifest that the plaintiff can have no relief other or different from that to which he would have been entitled, had his action been prosecuted in the forum in which of right it properly belonged. Now, that plaintiff does not seek a recovery involving any property rights inhering m himself is confessedly true. He does not claim to be entitled, at least as yet, to reimbursement for any taxes paid, or to have been otherwise injured or damaged in respect to any property right personal tc himself. Hence he has no ground upon which to predicate a demand for personal recovery. The thought of the petition, if we gather it correctly, is that the defendants having conspired together to fasten a further indebtedness upon the city, notwithstanding it was already indebted to the full constitutional limit, and having accomplished such result by the wrongful and unlawful issuance of warrants, which, in turn, were merged into a judgment, and the judgment paid by the proceeds of the bonds issued, and the city having lost the right to contest the validity of such bonds, both by reason of the lapse of time, and the fact that the same have passed into the hands of an innocent holder for value, therefore the defendants should be required, for the benefit of plaintiff and all other taxpayers of the city, to pay into the city treasury a sum of money sufficient to make payment, when presented, of the bonds so issued, principal and interest. .The proposition is unique, to say the least. It is fairly presented by the record, however, and is entitled to our deliberate consideration. In proceeding to a conclusion, we are not to lose sight of the fact that .this is a law action — triable, of course, in the absence of a motion to transfer -to the law docket, according'to the method of equity actions, but in every essential respect a law action nevertheless. Accurately speaking, it is an action in which a money judgment is sought to be recovered against the defendants, as individuals, on account of acts done by them while acting as mayor and councilmen of the defendant city, in that, as such officers, they wrongfully and unlawfully created a debt against said city in excess of the constitutional [484]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Osier v. Burlington Telecom
Vermont Superior Court, 2010
Elview Construction Co. v. North Scott Community School District
373 N.W.2d 138 (Supreme Court of Iowa, 1985)
T & M HOMES, INC. v. Township of Mansfield
393 A.2d 613 (New Jersey Superior Court App Division, 1978)
Koehler v. Massell
191 S.E.2d 830 (Supreme Court of Georgia, 1972)
Williford v. Moore
181 S.E. 515 (Court of Appeals of Georgia, 1935)
City of Newport v. McLane
77 S.W.2d 27 (Court of Appeals of Kentucky (pre-1976), 1934)
Ross v. Gonzales
29 S.W.2d 437 (Court of Appeals of Texas, 1930)
Klauder v. Cox
145 A. 290 (Supreme Court of Pennsylvania, 1928)
Klauder v. Cox
10 Pa. D. & C. 613 (Philadelphia County Court of Common Pleas, 1928)
Burns v. Essling
203 N.W. 605 (Supreme Court of Minnesota, 1925)
Todd v. State Bank
182 Iowa 276 (Supreme Court of Iowa, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
98 N.W. 308, 122 Iowa 479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lough-v-city-of-estherville-iowa-1904.