May v. Cass County

96 N.W. 292, 12 N.D. 137, 1903 N.D. LEXIS 24
CourtNorth Dakota Supreme Court
DecidedJune 24, 1903
StatusPublished
Cited by1 cases

This text of 96 N.W. 292 (May v. Cass County) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
May v. Cass County, 96 N.W. 292, 12 N.D. 137, 1903 N.D. LEXIS 24 (N.D. 1903).

Opinion

Young, C. J.

The plaintiffs instituted this action in the district court of Cass county for the purpose of canceling certain twenty-year drainage bonds issued by the county commissioners of that; county to defray the cost of constructing Argusville drain No. 13 and to enjoin the officers of that county from making assessments-to pay the same. The alleged illegality of the bonds in question is based upon the fact that prior to their execution and delivery, and. on July 1, 1901, the law authorizing the issuance of twenty-year-bonds (section 1474, Rev. Codes 1899) was amended, and the time; for which such bonds might be issued was reduced from twenty years to seven years. The question involved is one of power, and’ arises upon the plaintiffs’ demurrer to the defendants’ answer. The-answer alleges, in substance, that the drain in question was duly established and completed; that the board of drain commissioners on, October 4, 1900, filed their written report showing that all proceedings with reference to its construction and completion had been, duly and regularly had and taken, and that the total cost of the-same was $40,996.97; that oh said date the board of county commissioners adopted a resolution to the effect that it was for the-best interests of all persons liable for the cost of said drain that-bonds should be issued under and pursuant to the provisions of section 1474, Rev. Codes 1899, for the purpose of paying the expense; of constructing and completing said drain, and resolved that bonds. [140]*140in said sum should be issued under and by virtue of said section for the purpose mentioned, and further directed the county auditorio advertise for bids for such bonds; that the county auditor, in compliance with said resolution, did advertise for bids for the purchase of said bonds; that the bid of' Close Bros. & Co. was the highest and best bid, and the same was accepted on October 22, 1900; that their bid was to the effect that they would purchase all of said bonds at a premium of $275, and pay the cost of preparing the bonds; that on the same day the county commissioners duly passed and adopted a resolution that bonds should be issued under the provisions of section 1474, Rev. Codes 1899, for the total sum of $40,996.97, to said Close Brothers & Co., and payable to them or order, dated November 1, 1900- — one-third of the principal of said bonds to be payable ten years from their date, one-third payable fifteen years from their date, and the remaining twenty years from their date — and further directed the county auditor of Cass county to extend upon the tax lists against the lands liable for the cost of said drain an assessment one-twentieth of the principal of said bonds each year; that assessments have been made and extended in pursuance of said resolutionthat, thereafter, and before the said bonds could be prepared, signed, and issued, an action was commenced by the plaintiffs in this action for the purpose of declaring the proceedings for the construction of said drain illegal and void, and to enjoin the levying of assessments against their lands to defray the cost of constructing the same, and to enjoin the issuance of drainage bonds; that in said action an order was obtained and served enjoining and restraining the county commissioners and county auditor from proceeding with the issuance of said bonds and with the enforcement ■of the assessments, which said temporary in junctional order remained in force' and effect from the 5th day of January, 1901, until July '29, 1901, on which last named date it was dissolved by a final judgment dismissing the action upon the merits; that thereafter, and on the 1st day of November, 1901, bonds were duly executed and delivered by the proper officers to Close Bros. & Co. in the amount and form as provided by the resolution of the board of county commissioners made on October 22, 1900; that the said Close Bros. & Co., on receipt of said bonds, paid to the treasurer of Cass county the full amount of said bonds and $275 in addition thereto, in accordance with their bid as accepted by the board of county commission•ers. The plaintiffs demurred to the answer upon the ground that “it [141]*141does not state facts sufficient to constitute a defense, and it shows affirmatively that the bonds mentioned in said answer were issued without any authority of law.” The demurrer was overruled. Plain- . tiffs stood upon their demurrer, and judgment was entered dismissing the action. The appeal is from the judgment, and error is assigned upon the ruling upon the demurrer.

The demurrer was properly overruled. The validity of chapter 51, p. 65, of the Laws of 1895 (sections 1444-1474, inch, Rev. Codes 1899), known as the “Drainage Law,” and under which the drain in question was constructed and the bonds involved in this action were issued, was challenged by thesé plaintiffs in a former action, and was sustained by this court. Erickson v. Cass County, 11 N. D. 494, 92 N. W. Rep. 841. The question now presented relates to the effect of chapter 39, p. 49, of the Laws of 1901, which amended section 1474, Rev. Codes 1899. Prior to its amendment, section 1474 authorized county commissioners to issue drainage bonds, maturing in their discretion in “not exceeding twenty years from the date thereof.” The section as amended on July 1, 1901, provides.. that bonds issued thereunder “shall be payable in not less than three and not more than seven years from the date thereof.” The answer in this case shows that the board of county commissioners decided to issue twenty-year bonds to pay the cost of constructing the drain in question; that it advertised for bids for such bonds, and that on October 22, 1900, the bid of Close Bros. & Co. for all of said bonds was duly accepted. All of these acts took place before the amendatory act, chapter 39, p. 49, of the Laws of 1901, took effect, and at a time when the board had lawful authority to issue and sell twenty-year bonds. The bonds were not signed and delivered, however, until' November 1, 1901, which was after the amendment had taken effect. The contention of plaintiffs’ counsel is that the power of the board to issue twenty-year bonds was entirely revoked by the amendment,, and that, as these bonds were not actually signed and delivered until November 1, 1901, their issuance and delivery was without authority, and that they are, therefore, void. We cannot agree to this conclusion. It is not necessary to a decision of this case to determine whether chapter 39, p. 49, of the Laws of 1901, was intended to-operate prospectively only, and thus apply merely to drains thereafter established, as counsel for defendants contend; or whether,, as counsel for plaintiffs contends, the legislature intended by theamendatory act also to deprive the county commissioners- of authority [142]*142to issue twenty-year bonds to pay the cost of constructing-dráinstheretofore established and completed. We will assume for the purpose of this case that it was the legislative intent to entirely abrogate the authority of the county commissioners to issue twenty-year bonds. Still we are compelled to hold that the bonds involved in this action .are valid, for the reason that prior to the taking effect of the amendment rights had become vested under the law as it then existed, which the legislature could not destroy. The owners of the land liable for the cost of the drain had caused its construction in reliance upon the law as it was prior to the amendment, and under which the county commissioners were authorized, in their discretion, to extend 'their assessments over a twenty-year period.

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Cite This Page — Counsel Stack

Bluebook (online)
96 N.W. 292, 12 N.D. 137, 1903 N.D. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/may-v-cass-county-nd-1903.