People ex rel. Dunbar v. Denver District Court

268 P.2d 1098, 129 Colo. 203, 1954 Colo. LEXIS 382
CourtSupreme Court of Colorado
DecidedMarch 15, 1954
DocketNo. 17,320
StatusPublished
Cited by5 cases

This text of 268 P.2d 1098 (People ex rel. Dunbar v. Denver District Court) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Dunbar v. Denver District Court, 268 P.2d 1098, 129 Colo. 203, 1954 Colo. LEXIS 382 (Colo. 1954).

Opinion

Mr. Justice Knauss

delivered the opinion of the Court.

This is an original proceeding in which the Attorney General, on behalf of the People of the State of Colorado, seeks a writ in the nature of prohibition against the District Court in and for the City and County of Denver, Colorado, and Joseph J. Walsh, as a judge thereof, to prohibit further proceedings in a certain cause pending in said court. An alternative writ was issued requiring respondents to show cause why the writ should not be made permanent. The case is now before us for determination upon the petition, the return and answer thereto.

The facts which give rise to this proceeding are set forth in the pleadings and the exhibits thereto attached. From these it appears that on August 20, 1953 an action was filed in the Denver District Court by United Workers for the Blind in Colorado, Inc., and Hazel E. Richards, a taxpayer, on their own behalf and on behalf of all other persons similarly situated, as plaintiffs, against Ruth DaVolt, individually and as Executive Director Colorado Industries for the Blind; the State Board of Industries for the Blind (hereinafter referred to as the Board); A. R. Schrader, Jacob S. Schey, Alexander M. Lukens, Pete Campbell and Walter A. Woods, individually and as members of the said State Board; James A. [205]*205Noonan, as Controller of the State of Colorado; Homer F. Bedford, individually and as State Treasurer; Earl E. Ewing, individually and as Auditor of the State of Colorado; and the sureties on the official bonds of the defendants DaVolt, Bedford and Ewing.

We summarize the contents of plaintiffs’ thirteen page mother hubbard complaint, which consists largely of legal conclusions and accusations against certain defendants, as follows: That plaintiff, United Workers for the Blind of Colorado, Inc., is a nonprofit corporation organized in 1917 “for the purpose of promoting in every feasible way, the industrial, social, educational and economic welfare of the blind and partially blind people in this state,” and is presently so engaged; that plaintiff Hazel E. Richards in addition to being a taxpayer “is personally interested in the subject matter of this action”; that the defendants DaVolt, the Board, its members and agents have “negligently conducted the affairs of the Colorado Industries for the Blind”; that as a result of such negligence “Plaintiffs have suffered great and irreparable damage and injury.” Then follow allegations that the defendant DaVolt “alienated and otherwise disposed of a substantial amount of property and funds belonging to” the Industries, and that she filed with the State Controller false, fraudulent and deceitful reports covering the operation of the Industries for the fiscal years 1951-52 and 1952-53; that DaVolt “has covered or attempted to cover some of her transactions by bribing certain employees of the State Auditor’s office,” and that the audits of the accounts and assets of the Industries made by the State Auditor were “not conducted in accordance with accepted accounting principles,” and if same had been “properly conducted” shortages in inventories would have been discovered; that defendant Noonan is State Controller and as such “has the legal duty of approving or disapproving commitment vouchers authorizing expenditures involving the Colorado Industries for the Blind.”

[206]*206Plaintiffs seek damages against DaVolt, the Board and its members in the sum of $100,000; against Bedford as State Treasurer in the sum of $60,000; against the surety-on his official bond in the sum of $30,000; against Earl E. Ewing, as State Auditor, in the sum of $30,000, and a like amount against the surety on his official bond, and against .the surety on the official bond of DaVolt in the sum of $2,000, this apparently being the penal sum of her bond. Plaintiffs seek no money judgment against defendant Noonan.

Plaintiffs also pray for an order restraining and enjoining all defendants “from in any manner expending, disbursing, alienating, pledging, encumbering, or in any way disposing of or in any manner approving the disbursements, encumbering or disposal of any of the funds, records, property, or other assets belonging to or connected with or pertaining to the workshop and manufacturing division of the Colorado Industries for the Blind, and from engaging in the purchase or borrowing or loaning of any property or equipment or merchandise for, on behalf of, or in connection with the workshop and manufacturing division program of the Colorado Industries for the Blind.”

Plaintiffs also ask for the appointment of a “master or referee to make a complete audit of the affairs and transactions of the workshop and manufacturing divisions and vending stand programs of the Colorado Industries for the Blind.”

By Court order, issued upon the filing of the complaint, a temporary restraining order was issued against defendants, pursuant to which all funds of these divisions of the Colorado Industries for the Blind were impounded. By Court Order the Board, Ruth M. DaVolt, its' executive director, the State Controller and the State Auditor were by subpoenae ordered to produce certain official inventories, audits, reports, books and documents in said District Court.

On September 2, 1953 these state officials, the Board [207]*207and its members, and defendant DaVolt filed a motion to dismiss said action based, among other grounds, on the following: “that the complaint does not state a claim against these defendants or at all; that the court lacks jurisdiction over the subject matter.” Like motions to dismiss were filed by the sureties on the bonds of the state officials and agents.

On October 6, 1953, plaintiffs filed a motion for appointment by the court of an independent auditor to examine and report on the condition of the books, accounts and assets of the Industries. On November 13, 1953, the trial judge overruled defendants’ motion for dismissal of the action, and on the same day, over objection by defendants, entered his order appointing Ralph B. Mayo and Company as a master or referee to make a private audit and accounting of the books, transactions and affairs of the Industries, as prayed by plaintiffs. This original proceeding was instituted immediately after entry of the order last mentioned.

It is obvious that the Colorado Industries for the Blind is under the Executive Department of the state government, created to discharge a needed function on behalf of some of our citizens who may be benefited through its assistance. It is financed by the state; its. transactions and accounts are by statute to be audited by the state auditor. Its funds are disbursed, as are other state funds, through the state treasurer. The officers and agents of the state charged with the operation and supervision of this department of the state, are accountable to those who by statute are placed over them to supervise their actions, and to the General Assembly.

The public corporation known as the Colorado Industries for the Blind, its officers and agents, are by law. accountable to the Governor, and if there be mismanagement it may be corrected when reported to him by the Director of Public Institutions (Section 11 (f) (3), chapter 3, 1935 C.S.A., as amended by section 3, chapter [208]*20870 S.L. Colo. 1951), or by the state auditor (Section 43 (b) (4), chapter 2, S.L. Colo. 1941.) If appropriations made by the General Assembly are not wisely spent, that body can remedy such situation as a legislative matter when it is presented.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Marco Lounge, Inc. v. City of Federal Heights
625 P.2d 982 (Supreme Court of Colorado, 1981)
People in Interest of RJG
557 P.2d 1214 (Colorado Court of Appeals, 1976)
State, Colo. Civil Rights Com'n v. Adolph Coors Corp.
486 P.2d 43 (Colorado Court of Appeals, 1971)
People v. DISTRICT COURT OF CITY AND COUNTY
268 P.2d 1098 (Supreme Court of Colorado, 1954)

Cite This Page — Counsel Stack

Bluebook (online)
268 P.2d 1098, 129 Colo. 203, 1954 Colo. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-dunbar-v-denver-district-court-colo-1954.