Miller v. School District No. 3

39 P. 879, 5 Wyo. 217, 1895 Wyo. LEXIS 19
CourtWyoming Supreme Court
DecidedMarch 14, 1895
StatusPublished
Cited by18 cases

This text of 39 P. 879 (Miller v. School District No. 3) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. School District No. 3, 39 P. 879, 5 Wyo. 217, 1895 Wyo. LEXIS 19 (Wyo. 1895).

Opinion

Gboesbeck, Chief Justice.

The following material facts are set forth in the agreed statement filed in the district court in this cause: Isaac C. Miller, the plaintiff, is a resident taxpayer and qualified elector of School District Number Three in Carbon county, a legally organized school district. In 1886 the Legislative Assembly of the then Territory of Wyoming passed an act authorizing the defendant school district to issue bonds to the amount of $25,000 for the purpose of building a school house in the district, and in accordance with said act, the bonds of the district were thereafter issued in such sum, bearing interest at the rate of eight per centum per annum, which are a valid debt against ■the district. The interest accrued thereon and $3,000 of the ‘principal has been paid, leaving unpaid on the bonds the sum of $22,000.

Under the authority of an act of the Second State Legislature, permitting the school districts of the State to refund their bonded indebtedness, notice was given according to law of the regular annual school district meeting to be held on Monday, May first, 1893, in which, among other things, it was stated that the annual school meeting would determine by ballot whether the bonded indebtedness of the district should be refunded in accordance with said act (Chapter 10, Sess. Laws 1893), and in this respect, the clerk of the school district .followed-the direction of a special meeting of the board of ..trustees held April 18, 1893.

. At the annual school district meeting, held pursuant to such notice, and under the provisions of the statute, on the first Monday of May, 1893, being the first day of that month, the matter of refunding the bonds of the school district was by [220]*220resolution referred to a committee to report upon -at a subsequent. time.- to which, the annual meeting-was:adjourned.- At -the annual-meeting-83 , votes--were-cast-at the election of trustee, and at the adjourned-annual- meeting, -held May 10, 1893, the committee reported In favor-of the refunding proposition, and thereupon a resolution -was -passed authorizing the hoard of directors of the'district to issue and sell thb refunding bonds of the district in the sum of $23,000, then outstanding, in accordance with the act, the bonds issued to be known as the 15r30 bonds, and to be sold at the lowest possible rate of interest. A ballot was taken on. this resolution, and it was adopted by the unanimous vote of the' 34 electors present...

After these proceedings, the. district board corresponded with- various parties, dealing in bonds, -relative to placing the refunding bonds, and they were .advised that, owing to the financial stringency then prevailing, it would be impossible to sell or dispose of the bonds, and for this reason the district board-took no further steps toward selling the bonds, -until October, 1894, when a notice offering for sale the refunding bonds was published pursuant to the statute. . The bids.tendered under this offer were opened on' the 30th day of November, 1894, and the bid of Mason, Lewis.and Company, of Chicago, being the lowest and best bid, was accepted, the amount of the indebtedness, $22,000, to be issued in bonds to be dated January 1,1895, to bear interest at the rate .of six per centum per annum, the price offered being.$22,669, or $669 in excess of the face of the bonds, and the bonds were to run, as advertised, for- thirty years; to be redeemable- at the pleasure of the district after fifteen years fronrtheir date.- - The amount of the bonds of said sehool'district at the time of the admission of the State into the Union, 'July 10, 1890, was -less than four per centum of the assessed valuation of the taxable property bf the' school district. At the annual- charter election, held in the city of Rawlins, which lies'wholly within the limits .of the school district, held on the second Tuesday of April-preceding the annual school district meeting, more than .five hundred votes were cast. The agreed statement of facts closes with the statement that the board of trustees or directors'of the school [221]*221district is threatening to carry ont its agreement by issuing the bonds of the district to the bidders whose bids were accepted, and will do so unless restrained from so doing, and an injunction is prayed for against the board-of directors of the school district. - • • •

The plaintiff claims under the'agreed .-facts that the'hoard of directors or trustees of the district has no authority to issue ■the refunding-bonds as contemplated,'.(1) because the qualified electors .have not authorized the- same as required by law,- and the-rote of 34 in favor--of the issuing.of the bonds at-thé adjourned, annual meeting,- it is alleged; was not a-majority of the-qualified électors:of the district, nor-even a majority of the meeting,-.as it was;an- adjourned session-of the: same meeting at whieh.'82 voteswere cast; (2-)-because the debt which is th-us-to be created is not in-conformity with section 4 of article 16 of the constitution of the State, as the-proposition to create such< debt had not been-submitted to a vote of the j-^eople^ of--Said school-district; (3)-because the vote taken May TO, 1893, if legal '.at that time; was not for the issue of $22,000; ■but.for $23,000 -of* refunding-bonds, and-the latter, proposition has never-been submitted-to the .electors . of the district; and -.(4)-the time of- the vote-is -too-remote from the time of the •issuance of-the proposed bonds. --. The defendant-claims -that the .-proposed issue -of the refunding; bonds, is' legal in- al'l respects,, and all the -necessary, preliminaries have been -ful-ly .complied with according do law.

Upon--this agreed; statement-of-facts,'substantially asTéci-ted, the-district Court-for-Carbon; county found that an important and-difficult question arose in the case, and- a- number of questions-were-by-that'Court submitted to u's for decision; ! They will now :be considered, in detail. ' '

1.'"-Was the:vote had -at the:adjourned meeting on May 10, ; 1893, sufficient- to- authorize the issuance of these bonds -by the •school district?

Añs. - Yes;.' ; The language of-the’.act (sec. 1, CL. 10, Laws : 1893)' is- “The Board: of ’ Directors, of- • each and every -school district in-the-State of Wyomingjare. hereby authorized to issue '-tefundihg" bonds of such-'school -district, for the. -purpose of [222]*222taking up outstanding bonds of such school district, for any sum not exceeding the amount of outstanding bonds; provided, that the qualified electors of any such school district shall so elect and determine at any regular meeting or at any special 'meeting held for such purpose.” There is no dispute over the sufficiency of the notice given of the annual meeting, and in the absence of any statute providing a different rule, the electors present of a school district are competent to act by the vote of a majority of the meeting, which would be a quorum. The common law principle is that if an act is done by an indefinite body it is valid if passed by a majority of those present at a legal meeting, no matter how small a portion of the whole number entitled to be present they may constitute, and this has been deemed applicable to the town meetings in New England, which is a near approach to pure democracy. The corporate power in the New England towns resides in the inhabitants or citizens at large, and these form the constituent body.

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Bluebook (online)
39 P. 879, 5 Wyo. 217, 1895 Wyo. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-school-district-no-3-wyo-1895.