Platte v. Dortch

263 N.E.2d 266, 255 Ind. 157, 1970 Ind. LEXIS 464
CourtIndiana Supreme Court
DecidedOctober 27, 1970
Docket570S114
StatusPublished
Cited by8 cases

This text of 263 N.E.2d 266 (Platte v. Dortch) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Platte v. Dortch, 263 N.E.2d 266, 255 Ind. 157, 1970 Ind. LEXIS 464 (Ind. 1970).

Opinions

Hunter, C.J.

On March 13, 1969, three residents of Marion County, Indiana, filed an action in the Marion County Superior Court alleging Chapter 173 of the Acts of 1969 (hereinafter referred to as Chapter 173) to be unconstitutional. By that act, the legislature purported to create a “consolidated city” through a comprehensive plan for reorganization of the [159]*159pre-existing local governments of Indianapolis and Marion County. The plaintiffs, by their complaint, sought to enjoin the implementation of the terms of the act by the consolidated city and its public officials.

Subsequent to the filing of the first complaint, a supplemental complaint was filed by plaintiffs and an intervening plaintiff, appellant on this appeal, alleging that certain departments of the consolidated city under the terms of Chapter 173 had taken action to issue special taxing district bonds for the purpose of financing certain public improvements. The relief there sought was to enjoin the issuance of these bonds on the basis that such actions were being taken by officials appointed and acting under an unconstitutional act.

The trial court, pursuant to Trial Rule 54(B), entered a final judgment as to the supplemental complaint, holding that the various defendant public officials were de facto officers of the consolidated city under Chapter 173 and that consequently they might validly enter into contracts and issue bonds and notes which would be legally binding obligations of the several special taxing districts involved, each of which taxing districts had been established prior to the effective date of Chapter 173, notwithstanding the challenge to the constitutionality of the act.

On this appeal, appellant raises several questions for our consideration, all of which directly bear on the propriety of allowing the special taxing districts to issue bonds under the authority vested by Chapter 173 prior to a determination of that act’s constitutionality. Several points must be decided before that precise question can be answered.

First of all the status of the officers here in question must be determined. Appellant contends, relying heavily on the case of Norton v. Shelby County (1885), 118 U. S. 425, 30 L. Ed. 178, that the public officials concerned are not de facto officers since there is no de jure office to which they might claim holder. Although that point has not yet been judicially [160]*160determined, the contention is consistent with appellant’s original allegation that the act itself is unconstitutional. Appellee, on the other hand, argues that the officers are indeed de facto and therefore their acts, under Indiana case law, are valid and binding.

Although the question of the public officials’ status would appear to be settled in Indiana, there seems to be an irreconcilable conflict of authority in the various jurisdictions on this point. Norton v. Shelby County, supra, is perhaps the leading case in the line of authority which holds that the existence of a de jure office is a necessary condition to “de facto officer” status. The courts in Indiana have disagreed with this principle, however, and have held that a de facto officer may exist even where the office he purports to hold may subsequently be found to be grounded on an unconstitutional act. In the case of City of Michigan City v. Brossman (1938), 105 Ind. App. 259, 11 N. E. 2d 538 (transfer denied) Judge Dudine of the Appellate Court carefully analyzed the Norton case and cases there relied upon and concluded that the term de facto officer contemplated among others one who serves in an office created by an unconstitutional statute. The precise area of disagreement centered upon the definitional scope of the term de facto officer as articulated in the case of State v. Carroll (1871), 38 Conn. 449 and relied upon in Norton. In the Carroll case the court had there defined a de facto officer in the following language:

“An officer de facto is one whose acts, though not those of a lawful officer, the law, upon principles of policy and justice will hold valid so far as they involve the interests of the public and third persons, where the duties of the office are exercised:
Fourth. Under color of an election or an appointment by or pursuant to a public, unconstitutional law, before the same is adjudged to be such.”

[161]*161[160]*160It was the Appellate Court’s express conclusion that the fourth paragraph of the definition found in Carroll and relied upon [161]*161in Norton included a person who holds an office created pursuant to a statute subsequently held to be unconstitutional. We here re-affirm that position.

Having thus established that the public officials seeking to issue the bonds are de facto officers, the validity of the bonds as binding obligations in respect to third persons can be of no doubt. This court has consistently held that actions taken by de facto officers are binding and valid. See e.g. Book v. State Office Building Commission (1958), 288 Ind. 120, 149 N. E. 2d 273; State ex rel. Penn. R. R. Co. v. Iroquois Conservancy District Court (1956), 235 Ind. 353, 133 N. E. 2d 848; Miller et al. v. State ex rel. Tuthill (1930), 202 Ind. 18, 171 N. E. 381. Although not in issue, the court, in State ex rel. Penn. R. R. Co. v. Iroquois Conservancy District Court, supra, commented in a footnote on the validity of bonds issued pursuant to a statute there held to be unconstitutional :

“. . . it has been called to the attention of the court that two issues of bonds to pay the cost of constructing storm and sanitary sewers, each within a single county, have been sold to the public under the provisions of the Conservancy Act; and that there are now outstanding and in the hands of the general public $261,000 principal amount of one issue and $247,000 of the other.
The question of the validity of these bonds is not an issue in this case, nor do we attempt to incorporate it into those here presented. However, because the acts of the directors appointed in each of these proceedings, involve the interests of the public and of the holders of the bonds still outstanding we feel impelled to call attention to a rule of law as announced by the courts of appeal in this state, which we believe controlling as to the validity of such bonds as were issued prior to the decision of this court herein.
The law seems to be well settled in Indiana that one who is elected or appointed to an office under an unconstitutional statute, before it is adjudged to be so, is an officer de facto, and his acts will be valid in respect to the public whom he represents, and to third persons with whom he deals officially. Parker, et al. v. The State, ex rel. Powell (1892), 133 Ind. 178, 200, 32 N. E. 836, 18 L. R. A. 567; [162]*162Felker v. Caldwell (1919), 188 Ind. 364, 371, 123 N. E. 794; City of Michigan City v. Brossman (1938), 105 Ind. App. 259, 11 N. E. 2d 538.”

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Platte v. Dortch
263 N.E.2d 266 (Indiana Supreme Court, 1970)

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Bluebook (online)
263 N.E.2d 266, 255 Ind. 157, 1970 Ind. LEXIS 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/platte-v-dortch-ind-1970.