Morris & Whitehead, Bankers v. Williams

63 P. 236, 23 Wash. 459, 1900 Wash. LEXIS 378
Washington Supreme Court·Decided December 10, 1900·No. No. 3501·Published·Cited by 2 cases

Opinion

The opinion of the court was delivered by

Dunbar, C. J.

At a special session of the board of county commissioners of Pacific county, in August, 1898, said commissioners entered into a contract with Morris [460] & Whitehead,;, Bankers, appellant herein, whereby they agreed to issue and deliver to appellant the bonds of the county of Pacific in the sum of $44,000, or so much thereof as should be necessary to fund the existing general fund warrant indebtedness of said county as evidenced by certain warrants. It is insisted by the respondents that this contract was entered into by the commissioners while sitting as a board of equalization, but we have not found it necessary to enter into an examination of that question. It was provided in said contract that the bonds were to be dated the 1st of September, on which date, or as soon thereafter as possible, they were to be ready for delivery. They were to be due in twenty years from date and were to draw interest at the rate of five per cent, per annum. Among other provisions in the contract, the following appears:

“The party of the first part [respondents] shall cause all of said warrants to be funded to be called for payment ; provided, however, that no such call shall be made until the party of the second part [appellant] has notified the party of the first part as hereinafter set forth.
That said bonds are a valid and legal obligation to the satisfaction of the party of the second part, and has designated to the party of the first part what warrants are valid and can legally be funded.
The bonds shall be a legal and valid obligation to the satisfaction of the attorney of the party of the second part.
The party of the second part shall be allowed a reasonable time to obtain the opinion of its attorney on the validity of the said bonds, and, when said opinion is obtained, shall immediately notify the party of the first part of the purpose of such opinion.
The party of the second part shall pay the holders of the warrants the full value thereof, and thereafter present such warrants to the county treasurer for cancellation, and an equal amount of bonds shall then be delivered to the party of the second part.”

[461] On October 5, 1898, the board of county commissioners sent the following telegram to appellant:

“South Bend, Wash., Oct. 5, 1898.
Morris & Whitehead, Bankers,
Portland, Oregon.
When will bonds be ready ? Board in session. Answer. A. P. Leonard, County Auditor and Olerk of Board of
County Commissioners.”
To this telegram the following answer was received on October 1:
“Moody promises answer tomorrow. He has just returned from new York.”
On the following day the commissioners received the following telegram:
“Portland, Oregon, Oct. 7, 1898.
It will be necessary to validate warrant debt. Have commissioners meet immediately, — today, if possible,— and pass resolution in manner provided in act on page 44 of Session Laws of 1895, and then, if resolution is passed, give notice provided in said act by publication, and submit at general election. Eastern authorities hold that this must be done.
Morris & Whitehead, Bankers.”

Acting on this direction, the board of county commissioners submitted the question of the validation of the warrants to the voters of Pacific county, and the voters refused to validate the same. Hothing further was done in the premises until the 16th of January, 1899, when the appellant tendered the board of commissioners blank bonds and demanded that they be executed, but did not tender any money to take up the warrants, and did not take up or pay any of them. The commissioners refused to sign or execute the bonds. Whereupon appellant filed a petition in the superior court of the state of Washington for Pacific county for a writ of mandamus to compel said commissioners to issue and deliver to appellant said [462] bonds. A demurrer to tbe petition was interposed by tbe respondents, which was overruled. Respondents filed an answer. The case was tried, and judgment was rendered in favor of the county, refusing the writ. Krom this judgment an appeal was taken to this court.

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Morris & Whitehead, Bankers v. Williams, 63 P. 236, 23 Wash. 459, 1900 Wash. LEXIS 378 (Wash. 1900).

63 P. 236 (Morris & Whitehead, Bankers v. Williams) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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