Meriwether v. Garrett

102 U.S. 472, 26 L. Ed. 197, 12 Otto 472, 1880 U.S. LEXIS 2056
CourtSupreme Court of the United States
DecidedDecember 13, 1880
Docket575
StatusPublished
Cited by298 cases

This text of 102 U.S. 472 (Meriwether v. Garrett) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meriwether v. Garrett, 102 U.S. 472, 26 L. Ed. 197, 12 Otto 472, 1880 U.S. LEXIS 2056 (1880).

Opinions

[501]*501Mb. Chief Justice Waite'

announced the conclusions reached by the- court as follows: ■ — ■

1. Property held for public uses, such as public buildings, streets, squares, parks, promenades, wharves, landing-places, fire-engines, hose and hose-carriages, engine-houses, engineering instruments, and. generally everything held for governmental purposes, cannot be subjected to the payment.of the debts of the city. Its public character forbids' such an appropriation-. Upon the repeal of the charter of the city, such property passed under the immediate control of the State, the power once delegated to the city in that,behalf having been withdrawn.

. 2. The private property .of individuals with.in the limits of the territory of' the city cannot be Subjected to the payment-of the debts of the city, except through taxation. The doctrine of some of the States, that such property can ‘be reached directly on execution against the municipality, has-not-been generally accepted.

3. The power of taxation is legislative, and cannot be exercised otherwise than under the authority of the legislature.

4. Taxes levied according to law before the repeal of the charter, other than such as were levied in obedience to. the special requirement of contracts entered into under the authority of law, and such as were levied under judicial direction for the payment of judgments recovered against the city, cannot be collected through the instrumentality of a court of chancery at the instance of the creditors of the city. Such taxes can only be collected under authority from the legislature. If no such authority exists, the remedy is by' appeal to the legislature, which alone can grant relief. Whether taxes levied in .obedience to contract obligations, or under judicial direction, can be collected through a receiver appointed "hy a court of chancery, if there be no public- officer charged with, authority from the legislature to perform that duty, is not decided, as the case does not require it.

5. The receiver and back-tax collector appointed under the authority of the act of March 13, 1879- is a public officer, clothed with authority from the legislature 'for the collection of the taxes levied before the repeal of the charter. The funds [502]*502collected by him from taxes levied under judicial direction cannot be'appropriated to any other uses than those for which they were raised. • He, as well as- any other agent of the State charged with the duty of their collection, can be compelled by appropriate judicial orders to proceed with the collection of ■ such taxes by sale of property or by suit or in any other way authorized by law, and- to apply the proceeds upon the judgments.

6. The bills in this case cannot be amended so as to obtain relief against the receiver and back-tax collector, withoht making an entirely new suit. They were not framed with a view to'any such purpose.

7. The decree of the court below is reversed.

8. The cituse is remanded, with instructions to dismiss.the bills, without prejudice. If, on the settlement of the accounts of the receiver herein, it shall be.found he has any money in his. hands collected on taxes levied under judicial direction to pay judgments in favor of any, persons who have become parties to this suit, an order may-be made directing its appropriation to the'payment of such judgment. , ’

Upon the first, second, third, and fifth of these propositions' the judgment of the court is unanimous". Upon-the fourth, .sixth, seventh, and eighth it is, by a majority only.

Mr. Justice Field

delivered the following opinion for himself, Mr. Justice Miller, and Mr. Justice Bradley.

Mr.. Justice Miller, Mr. Justice Bradley, and myself concur in the judgment rendered, but, as tbe judgment is not accompanied by a, statement, of the reasons on which it is founded, I proceed to state those which have controlled us.

In January, 1879, the city of Memphis, in the State .of Tennessee, was financially, in a bad condition. She had been for many years a municipal corporation,' and was invested with the ordinary powers of such, bodies to make contracts and' incur obligations for municipal purposes, and to ■ levy and collect taxes to meet-her expenditures. Her authorities were' also at. different times specially 'empowered by tbe legislature of the State to subscribe" for stock in railroad corporations, to. aid in the construction of linés of railway leading to and" from [503]*503the city, and to issue interest-bearing bonds .for the amount subscribed; also to issue bonds of like character to raise the means to erect water-works, construct pavements,' and make “any public improvements” that might be necessary, and to acquire property for the public use of the city.. Indeed, the powers conferred at various times upon the authorities to undertake public works, and engage in enterprises for the benefit of the city, were as large as the supposed necessities of a municipality with great expectations of. future growth could suggest; and these powers appear to have been Exercised with a liberality, proportionate tó the expectations. Taxes were levied to 'meet the consequent expenditures of the city and the interest on her bonds, but these were not always enforced with the readiness with which, the obligations were incurred..

The record shows that for several, years preceding 1879 not more than three-fifths of the annual taxes were collected. Whether this arose from the viciousness of the system of .taxation' adopted, or- the inefficiency of the officers of collection,- is immaterial. Probably it arose partly from both causes. The natural-result followed: the revenues received became insufficient to meet the just claims of creditors; obligations were not paid as they matured ; coupons for interest on bonds were not provided for; the city was in default for much of the princi-pal and all of the interest'of her indebtedness.: she was insob, v.ent. Suits were soon commenced against her by creditors : some in the Federal courts, some in the State courts; and from the Federal courts in several cases a mandamus was issued to the authorities of the city, to levy a special tax for the payment of judgments recovered. With t.axes uncollected, debts maturing, and both principal and interest unprovided for; with numerous suits commenced and more threatened; with credit gone and the property of her citizens already subjected to burdens difficult to be borne, =— the city was, in., a condition out of which she was almost helpless, to extricate herself.

While the city was thus burdened with debts and pursued, by creditors, the State interfered; and on the 29th of January, 1879, repealed the charter of the city, took the immediate con[504]*504trol and custody of her public property, and afterwards assumed the collection of the taxes levied, and their application to the payment of her indebtedness.

The repealing act was in terms general, and applied to all municipal corporations in the State having thirty-five thousand inhabitants at the date of its passage, to be ascertained by the' governor, and declared by his proclamation. The city of Memphis had that number of inhabitants ; and it was so proclaimed by the governor.

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Cite This Page — Counsel Stack

Bluebook (online)
102 U.S. 472, 26 L. Ed. 197, 12 Otto 472, 1880 U.S. LEXIS 2056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meriwether-v-garrett-scotus-1880.