Potters National Bank v. Ohio Township

103 A. 605, 260 Pa. 104, 1918 Pa. LEXIS 476
CourtSupreme Court of Pennsylvania
DecidedJanuary 7, 1918
DocketAppeal, No. 40
StatusPublished
Cited by15 cases

This text of 103 A. 605 (Potters National Bank v. Ohio Township) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potters National Bank v. Ohio Township, 103 A. 605, 260 Pa. 104, 1918 Pa. LEXIS 476 (Pa. 1918).

Opinion

Opinion by

Mr. Justice Frazer,

Plaintiff sues to recover on a note for $1,500 given by the supervisors of Ohio Township, Beaver County, for money loaned to the township for use in defraying expenses incident to the construction of township bridges and the repair of roads. The defense was that the township supervisors were without authority to borrow money for the purpose stated, and, if such power existed, the note was void because of noncompliance with the constitutional provision requiring a. tax levy sufficient to pay the debt and interest within thirty years, and for the further reason that proper notice of the meeting of the board of supervisors at which the loan was voted was not given. The trial judge submitted to the jury the various questions of fact raised and upon a verdict for plaintiff and judgment thereon, defendant appealed.

[107]*107Defendant is a township of the second class and in the year 1912, its board of supervisors, consisting of three members, levied a tax of five and one-half mills for road purposes during the current year, this amount having been found sufficient for ordinary requirements. On September 1st of that year, that part of the county was visited by an extraordinary rainfall, resulting in a flood which destroyed a number of township bridges and rendered roads impassable at various places. At a meeting' of the supervisors held the following day, an additional levy of four and one-half mills was made for the purpose of procuring, funds to be used in rebuilding the impaired roads and bridges, thus bringing the total levy for the year to ten mills, the limit allowed by the Act of June 23,1897, P. L. 194. Immediately following the flood the supervisors began the work of repairing the roads and placing them in passable condition for temporary use, in the meantime preparing plans and specifications for permanent reconstruction which contemplated the erection of eight new concrete bridges. After due advertisement the contract for bridge work was entered into November 8, 1912, and by its provisions each structure was to be paid for upon completion and acceptance by the supervisors, all work to be finished on or before November 30, 1912, providing the weather was favorable for concrete work. In the early part of December, three of the bridges were substantially completed and the contractor requested payment on account of his contract. In the meantime the supervisors were receiving taxes from the current and special levies, the amount however so received, after payment of current expenses for work done, being insufficient at that time to meet the demand of the contractor, and, on December 5, 1912, at a special meeting called for that purpose, a motion was adopted authorizing the borrowing of $1,500 from plaintiff. Conformably to the board’s action a ninety-day note was duly executed by the supervisors and discounted by plaintiff bank and the proceeds applied by the super[108]*108visors on account of the contractor’s claim and other necessary work done on the roads and bridges. On December 19th, the levy of ten mills was continued for the year 1913 and upon maturity of the $1,500 note a renewal was obtained for a further period and upon maturity of the renewal note, payment was refused by a succeeding board of supervisors, although at the end of the year 1913 there were ample funds in the treasury to meet the obligation and this condition of. the treasury continued up to the time this action was brought.

Section 6 of the Act of June 13, 1836, P. L. 555, requires that public roads “at all seasons be kept clear of all impediments to easy and convenient passing and traveling at the expense of the respective townships.” Section 31 of the same act imposes upon the supervisors the duty of erecting and maintaining sufficient bridges over creeks and gullies where necessary for the ease and safety of travelers. The duty imposed upon township supervisors is a mandatory one and failure to perform renders them subject to indictment. To raise funds they are given power to assess such taxes as may be necessary for that purpose not exceeding ten mills on the assessed valuation for county purposes: Act June 23,1897, P. L. 194. Aside from the taxing authority conferred upon them the financial resources of township supervisors are limited and they are without general power to borrow money on the credit of the township. An exception to this limitation, arising from necessity, exists however where, by reason of an extraordinary emergency or condition, such as a destructive flood, roads are rendered impassable and bridges destroyed and the current revenues from taxation are insufficient to defray the unusual expenses necessary for repairs and reconstruction. In such case, as their duty requires them to place bridges and roads in a reasonably safe condition for travel without delay, the only course open is to borrow the necessary funds, and power to do so is necessarily implied: Maneval v. Jackson Twp., 141 Pa. 426-435. The nature [109]*109of the repairs and the style or type of new bridges to be constructed to replace those destroyed are matters necessarily resting in the discretion of the supervisors and naturally depends upon the extent of traffic and the demands of modern conveyances.

The trial judge submitted the case to the jury on the theory that supervisors lacked general power to borrow money, but might do so in case of emergency and in absence of funds on hand to meet the unlooked for expense. The jury were instructed they must first find from the evidence existence of an emergency by reason of an extraordinary flood; second, insufficient funds in the treasury at the time to meet the expense incident to repairing the damage; and if they found the existence of an emergency and no funds on hand to meet the expense for necessary work of reconstruction, the supervisors under such conditions possessed authority to borrow money. The jury concluded, and their conclusion is fully sustained by the testimony, that an emergency existed and that the treasury was without funds to meet the exigency. This disposes of assignments one to five and seven to twelve inclusive.

The third question of fact submitted to the jury is covered by assignment of error fifteen, which avers the trial judge erred in refusing defendant’s request to charge that if they believed the testimony of Dawson, one of the members of the board, to the effect that the notice sent him by the secretary, of the special meeting held December 5th, set forth in substance that the purpose of the meeting was to raise money to pay on the contract for the bridges, such notice was not sufficient to inform him of a project or plan to borrow money to meet that indebtedness. The question of a sufficiency of the notice was submitted to the jury and they were instructed it was incumbent on plaintiff to satisfy them that the meeting was regularly called and held, and the members of the board received reasonable notice of the nature' of the business proposed to be transacted, and, in [110]*110this connection, the court further charged that if the absent supervisor received a notice informing him in substance that the meeting was for the purpose of raising funds to apply on the contract for bridges, such notice was sufficient. The object of stating the purpose of a meeting is to give information of the subject-matter to be passed upon, that members can deliberate and act intelligently, consequently a notice is ample if the purpose or object of the meeting can fairly be understood from its language: Dillon on Municipal Corporations, 5th ed., sec. 508, p. 830; 38 Cyc. 614.

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Bluebook (online)
103 A. 605, 260 Pa. 104, 1918 Pa. LEXIS 476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potters-national-bank-v-ohio-township-pa-1918.