Lynn v. Polk

76 Tenn. 121
Tennessee Supreme Court·Decided December 15, 1881·Published·Cited by 18 cases

Opinion

Turney, J.,

said:

On the 5th of April, 1881, the Legislature passed an act entitled “an act to settle and compromise the bonded indebtedness of the State.” The 3d section of the act is as follows:

“Be it further enacted, that the coupons on said compromise bonds, on and after their maturity, shall be receivable in payment for all taxes and debts due the State, except for taxes for the support of the common schools and for the payment of the interest upon the common school fund, and said coupons shall show upon their face that they are so receivable.”

The 9th section provides the form of the compromise bond, in which it is declared: “The coupons of the bonds as they become due are receivable for-[123]*123all taxes and debts due tlio State of Tennessee”— omitting the exception designated by the 3d section.

The 10th section .makes it the duty of the funding board (composed of the Secretary of State, Comptroller and State Treasurer), immediately upon the receipt of the original bond or bonds and the issuance of the compromise bond or bonds, to cancel said original bond or bonds.

This bill was filed on the 24th of May, 1881, attacking the act for various' causes, among them alleging its unconstitutionality, and alleging that complainants are all resident citizens of the State of Tennessee; have been for many years ; are now holders of property not exempt from taxation; and that thej' pay taxes to the State on their property. The bill charges that defendants are preparing with all possible haste to commence the work of funding. One of the circuit judges for the State granted a fiat enjoining action upon the part of Polk, Nunn and Nolan, the members of the funding board. There-was a motion to dissolve the injunction. On its hearing the chancellor, of his own motion, dismissed the-bill, and complainants appealed.

In support of the action of the chancellor, it is,, first, insisted complainants cannot sue at this time- and in this manner. As we have seen, they are citizens and tax-payers of the State. It must be that, to the extent of taxes for which they are respectively liable, each has an interest in the questions ’ raised. The act of the Legislature and the defense to the bill constitute an effort in the direc[124]*124tion to make each pay such an amount of money aá may be assessed upon his property, to the end that' the law shall be carried out. The act points as distinctly to each of the complainants and as directly affects his estate as if he were mentioned by name, his property enumerated in a statement of its character and kind, with an actual calculation of the proportion of the amount of the debt and interest it must pay, with the _ bonds and coupons specifying the facts and the individual 'obligation of each complainant. If the law is valid, it makes an increase of taxes to be collected of each tax-payer, to be proportioned in the distribution of the additional levy of the annual three per cent, interest on the funded debt. The act, Avhile in its present shape, is merely a proposal to contract. If the injunction is cut loose, and the creditors accept its terms and fund their debts, it is then an executed contract, and gives to the creditor the right and power to collect by law three per cent, of taxes annually, more than can now be collected by law. Without the contract the creditor is unable to force a payment of any part of the debt due him. The argument that the tax-payer is bound in honor and morals to pay, under existing laws, the debt and six per cent, interest,' and therefore can sustain no injury from a compulsion to, pay by law one-half that interest, and therefore ought not to be heard to complain, cannot avail with the courts. "We .have nothing to do with the honor or morals of complainants; these they must decide uj>on for them.selves. The only question for us to decide, upon the [125]*125right to sue, is, have complainants an interest in the subject-matter of the suit such as will entitle them to invoke the judgment of the court upon legal questions? It is an inherent power of courts of equity to prevent, as well as to redress grievances, and if it is unlawful to compel debtors to pay three per cent, upon a contract drawing six per cent., but which rested upon no law save the honor and morals of the debtor, then the debtor may say he is aggrieved, and ask the intervention of the courts to prevent the enforcement in part of that agreement. which the creditor accepted solely upon his faith in the honor of the debtor. In such case, why may he not say, “the law must leave us as it found us”? And as it is, the creditor is not permitted to say to the debtor, “your security of honor and morals is not available, and I will make a contract to bind you in law as well as. morals.” Then, as these complainant tax-payers could not by the law at the time of the contract, and which is part of that contract, be compelled to pay anything, now that it is attempted to change the contract and the law, so as to compel the payment of three per cent, yearly on the $27,000,000 of indebtedness, or their proportionate share of the additional annual tax of $810,000, it must be that they have a direct and personal interest in the questions, and are proper parties to make them.

I am unable to appreciate the argument that, in any event, the suit is prematurely brought; that if complainants would have the right to sue at all, they must wait for some wrong, actual or threatened. The [126]*126latter lias already transpired, so far as the abstract right to sac is involved. As we have seen, the defendants are making all possible haste to comply with the act, fund the debt, and fasten the per centum on the tax-payer. This is not denied. On the contrary, the effort to be relieved of the injunction sustains the allegation. If, when the act is a complete or, executed contract and 'is being directly enforced, the tax-payer may resist it and relieve himself from its impositions, I can see no good and substantial reason why he may not strike it at the- threshold and destroy it in its half-grown life. If ■ the taxpayer may move at all, he may certainly move when he is . imminently threatened, as here. A preparation to affect him is the beginning of his right of action, and he may commence defensive and protective proceedings. If the tax-payer may not move in this matter no one can, and there may be a palpable and egregious wrong without any means of redress — a condition never admitted in the law.

If there is no precedent for taking cognizance of the question, we must do as the courts of all ages have done in novel matters, — make one, founded in reason and solid justice. On this question we really need no case antecedent; general principles are broad enough to and do embrace it. I think, however, we have precedents in our reports. In Bradley v. Commissioners, etc., 2 Hum., 428, the Legislature had passed an act establishing the new county of Powell, and appointing commissioners to organize it. The bill was filed to enjoin the commissioners from or[127]*127.ganizing the county as directed by act of 1832. It was argued that one or two private individuals cordd not seek the aid of a court of chancery for the purpose of the bill. Judge Turley said: “The convention of the State, which formed the Constitution, thought proper to place restrictions upon the power of the Legislature to form new counties, and of consequence, any attempt to do so contrary to the restriction is a void exorcise of the power,

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Lynn v. Polk, 76 Tenn. 121 (Tenn. 1881).

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