Mosier v. Thompson

393 S.W.2d 734, 216 Tenn. 655, 20 McCanless 655, 1965 Tenn. LEXIS 611
CourtTennessee Supreme Court
DecidedSeptember 3, 1965
StatusPublished
Cited by2 cases

This text of 393 S.W.2d 734 (Mosier v. Thompson) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mosier v. Thompson, 393 S.W.2d 734, 216 Tenn. 655, 20 McCanless 655, 1965 Tenn. LEXIS 611 (Tenn. 1965).

Opinion

Mr. Justice White

delivered the opinion of the Court.

[657]*657In a Special Session of the Quarterly County Court of Putnam County, held in February, 1964, it was resolved that said County take appropriate action, in court if necessary, to rescind a contract executed by the Putnam County Board of Education with James T. Watts and Company, contractors, for the construction of a new County high school building.

Pursuant to such resolution, the bill filed herein alleged that the contract, though originally awarded pursuant to a low-bid after advertisement, was negotiated and executed at a different figure and for less structure than originally contemplated because of a lack of funds to pay the bid price. It was averred that the structure as agreed upon between the defendants in their negotiation would result in the erection of a shell building and would, therefore, constitute illegal waste of public funds; that the contract was against public policy, illegal, void, and unenforceable because the ultimate price of such high school building was contingent upon the action and conduct of third parties, not parties to the contract; and that there had been a fraudulent collusion between the School Board and the said contractor, but no facts are averred to support the charge of collusion.

The bill shows that on August 27, 1962 an appropriation'of $1,040,000.00 was authorized by the complainant Quarterly Court on the recommendation of the School Board, for thé construction of the new high school. Such appropriation “to be derived from the issuance of general obligation bonds” of the County.

A demurrer was filed setting forth a number of grounds, contending inter alia, that the complainants had no legal right to file and maintain the suit and further that the complainants were attempting to usurp the [658]*658power and authority and the discretion vested in the County Board of Education.

Upon the hearing the chancellor sustained the demurrer upon the ground that the complainants were without authority of law to maintain the action and further that the exclusive right of making contracts, such as the one involved, was vested in the sound discretion of the County Board of Education.

We do not find it necessary tp discuss the merits of the case since we believe the question of whether the County Judge and the Quarterly County Court have the authority in law to maintain this action against the County .Board of Education is determinative of this case.

The power and jurisdiction of quarterly courts is set out by statute and it has long been the policy of this State that such enabling statutes are strictly construed. It has been held repeatedly that the county court, whether quorum or quarterly, has only such powers and jurisdiction as are vested in it by statute. The case of Wright v. State, 171 Tenn. 628, 106 S.W.2d 866 (1937), held:

This court, speaking of the power of county courts, further has held that the powers intrusted to the county courts emanate from the Legislature alone; hence when a power claimed for them is not conferred it must be held not to exist. Nashville & K. R. Co. v. Wilson County, 89 Tenn. 597, 15 S.W. 446; Shelby County v. Tennessee Cent. Exposition Co., 96 Tenn. 653, 36 S.W. 694 [33 L.R.A. 717]. See, also, Code sec. 161 [now T.C.A. sec. 16-701]. 171 Tenn. at 637, 196 S.W.2d 869.

When the power or jurisdiction exercised by the quarterly court is called to question, as done by demurrer here, the party relying upon the action of the court must [659]*659be able to point out tbe statute conferring the jurisdiction. State ex rel. Davidson County Bd. of Ed. v. Pollard, 124 Tenn. 127, 136 S.W. 427 (1910); Johnson v. Brice, 112 Tenn. 59, 83 S.W. 791 (1903); State v. True, 116 Tenn. 294, 95 S.W. 1028 (1905).

We have carefully examined the applicable statute, T.C.A. sec. 49-201, which sets out the duties of the quarterly county court. Any right or power which the quarterly county court might have should be contained in Subsections (2), (3), (4), (5) or (8), of this statute.1

This statute was considered and interpreted in the ease of Bandy v. State ex rel. Bd. of Education of Sullivan County, 186 Tenn. 11, 207 S.W.2d 1011 (1948). It held that the quarterly court has no authority to direct a county school board where it may erect, furnish and equip a [660]*660high school building. This case is authority also for the conclusion that the. quarterly court'has’ the power to audit the accounts of the school' board to see there is no waste, but this authority does not give the court power to oversee the expenditure of special school funds financed by a bond issue. The Bandy case, at page 16, further held:

When the county court has once directed the issuance and sale of bonds for school purposes and lodged the proceeds thereof with the trustee, its authority ends, except to audit the accounts of the school board to see that there is no waste of public funds. There is no provision in the constitution giving the quarterly court any authority over public schools and school property. Whatever power it may claim or seek to exercise, is derived solely from the legislature. If a power is not given it is said that it does not exist. 186 Tenn. at 16, 207 S.W.2d 1013.
The money arising from the sale of school bonds and lodged with the county trustee as a “special school fund” to erect, repair and equip schoolhouses becomes no part of any county school budget. The argument, therefore, of counsel that because the quarterly court audits the school budget and must approve it and that it .must also approve the expenditure of money arising* from the sale of school bonds, is wholly without merit. 186 Tenn. at 18-19, 207 S.W.2d 1014. ' ' ' *'■

Also, in the case of Baker et al. v. Milam, 186 Tenn. 20, 207 S.W.2d 1014 (1948), this Court held, among other things, that resolutions of a quarterly county court undertaking to allocate funds between schools and to appoint a committee to supervise the expenditure of the money had no binding effect. The Court said:

[661]*661When the bonds are issued and sold, and the funds lodged with the county trustee as required by law, the quarterly court has no control over this money; it has no right to draw upon the fund for any purpose. Only the school board is authorized to draw upon this fund, Code, Sec. 2566 [now T.C.A. sec. 49-713], and this board has the exclusive authority to allocate or prorata the fund for the erection and equipment of schoolhouses at Scotts Hill, Parsons, and/or such other site or sites as it may select. 186 Tenn. at 23, 207 S.W.2d 1015.

In the most recent case written by Mr. Chief Justice Burnett, for the Court, of Lamb v. State ex rel. Kisabeth, 207 Tenn. 159, 338 S.W.2d 584

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Bluebook (online)
393 S.W.2d 734, 216 Tenn. 655, 20 McCanless 655, 1965 Tenn. LEXIS 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mosier-v-thompson-tenn-1965.