North v. Haskett

1949 OK 235, 211 P.2d 279, 202 Okla. 146, 1949 Okla. LEXIS 437
CourtSupreme Court of Oklahoma
DecidedNovember 1, 1949
DocketNos. 33477, 33478
StatusPublished
Cited by7 cases

This text of 1949 OK 235 (North v. Haskett) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North v. Haskett, 1949 OK 235, 211 P.2d 279, 202 Okla. 146, 1949 Okla. LEXIS 437 (Okla. 1949).

Opinion

ARNOLD, V. C. J.

These suits were brought in the district court of Seminole county to quiet title to property within street improvement districts of Wewoka against known and unknown holders of street improvement bonds. In accordance with the prayer of the petition, title to the property involved was quieted, the lien of the special assessments was canceled, and the clerk of the city of Wewoka and the county treasurer of Seminole county were directed to cancel the special assessments upon the records against the properties involved.

In each case the petition alleged the levy of special assessments and the issuance of street improvement bonds; that the bonds were more than three years past due; that the claims and liens of the bondholders had been extinguished by lapse of time; that no attempt had been made by the bondholders to collect unpaid assessments either by foreclosure or “by sale through the county treasurer as provided by law”; and that said owners claimed some right, title and interest in the property adverse to plaintiff.

The proof showed, according to the assertion of plaintfif in error, North, defendant below, all that was necessary to sustain the judgment quieting the title, canceling the assessment, and absolving the property of the lien except proof that no bondholder had certified his willingness, during the time limited, to accept refunding bonds.

All parties concede here that the 1939 Act (chapter 33, page 156, S. L. 1939) has been held constitutional by this court (Baccus, Co. Treas., v. Banks, 199 Okla. 647, 192 P. 2d 683), and that this action was brought and prosecuted under and by virtue of section 242 thereof.

The question of the insufficiency of the petition to state a cause of action and the proof to sustain the judgment entered was asserted and the point preserved throughout the course of the proceedings.

In connection with the only question necessary to be determined by us, the defendant asserts that no allegation or proof was made that the bondholder had not asserted his willingness to accept refunding bonds before the three-year limitation provided by section 242 of the Act had expired. The section provides:

“From and after the effective date of this Act, the right of any holder to enforce the lien of any ‘Street Improvement Bond’ issued under authority of [147]*147Chapter 10, Article 12, Oklahoma Revised Laws of 1910, or of any ‘Street Improvement Bond’ or ‘Refunding Street Improvement Bond’ issued under any authority contained in Chapter 33, Article 14, Oklahoma Statutes of 1931, and statutes supplementary and amend-atory thereto, by foreclosure, mandamus, refunding or otherwise, shall be barred upon the expiration of three years immediately following the maturity date named in the face of such bond, unless the holder of any such bond shall have commenced suit to foreclose his lien by filing an action for that purpose and procuring service of summons therein or shall have evidenced his willingness to accept Street Improvement Refunding Bonds issued under the provisions of this Act, in exchange therefor, prior to the expiration of said three year period of limitation; Provided, however, that in all cases where the period of limitation herein mentioned has expired or will expire prior to November 1, 1939, the holder of such bonds shall have until December 1, 1940, in which to pursue his remedy or obtain the benefits of this Act. The running of the period of limitation herein fixed shall be an absolute bar to any action or proceeding brought thereafter, whether the same is plead as a defense or not, and the property against which such bonds theretofore represented a lien shall thereafter be, by operation of law, absolved of any lien or liability on account of said bonds.”

In construing the foregoing provisions of the Act and determining the question presented, it should be kept constantly in mind that this is a suit to quiet title against a theretofore valid lien supporting validly issued street improvement bonds, which lien is said to have been absolved by operation of law because the statute of limitation provided by the Act had run, by reason of the fact the owners of the bonds had not done the things required to prevent the running of the statute and the absolution of the assessment lien. This is an affirmative action to quiet title against the cloud of a lien valid in its inception which is alleged to have been absolved by reason of the limitation having run against the bonds which it supported. This is not an action by a bondholder after the expiration of the time limit.

By the plain import of the foregoing section of the statute, the limitation therein provided does not effectively run and the lien of the street improvement assessment is not affected unless the holder of the bond, validly issued, has failed within the limitation of time prescribed (1) to bring a suit to foreclose, or (2) has evidenced his willingness to accept street improvement refunding bonds, as therein prescribed.

There is no limitation under this provision unless the bondholder fails for three years after maturity of the bonds to file suit to foreclose or to assert his willingness to take refunding bonds in exchange, all as provided by the section. If he has done either within the limit of time prescribed his lien is not affected but continues. Its continuance and preservation and the effective running of the time limit are dependent upon his failure to exercise one of the rights granted. The burden is on the one claiming the applicability of the limitation to assert and prove not only the expiration of the time, but its limitation by reason of the bondholder’s failure to file suit or assert his willingness to accept refunding bonds. Proof that no suit was brought within the limited period of time does not supply proof that the bondholder did not evidence his willingness to accept refunding bonds within three years after the maturity of the bonds. Proof of such contingency, not made here, is just as necessary as was proof, which was made, that no suit was brought within the limit of time prescribed. Both are precedent conditions.

We think it is clear that the clause in section 242 of the Act, beginning with the word “unless,” constitutes an exception to the operation of the three-year limitation prescribed by the preceding language of the section. Unless the bondholder has omitted to commence an action to foreclose his lien, or as an alternative thereto has failed [148]*148to evidence his willingness to accept refunding bonds under the terms of the. Act, his right to do so after the expiration of the limitation prescribed is barred. Conversely, unless plaintiffs by the allegations of fact in their petitions show to the court that the bar of the statute has fallen by reason of the failure and omission of the bondholder to take proper steps to continue his lien in force, such petitions are insufficient upon their face to exclude the bondholders from the exception expressly made in their favor by the language of the limitation enactment. Until the facts alleged and proven show the exclusion of the bondholder from the benefits of the exception, no present existing right in plaintiffs is shown to have their titles quieted by judgment.

In order for plaintiffs to have a present right to the quieting of their titles by a judgment, they must plead all of the facts necessary to show that the lien against their properties has been “absolved” by a failure of the bondholders to toll the special period of limitation by either of the methods permitted by the exception stated. In 49 C. J. 153, sec.

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Bluebook (online)
1949 OK 235, 211 P.2d 279, 202 Okla. 146, 1949 Okla. LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-v-haskett-okla-1949.