Sackett v. City of New Albany

88 Ind. 473
CourtIndiana Supreme Court
DecidedMay 15, 1883
DocketNo. 10,495
StatusPublished
Cited by36 cases

This text of 88 Ind. 473 (Sackett v. City of New Albany) 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
Sackett v. City of New Albany, 88 Ind. 473 (Ind. 1883).

Opinion

Niblack, C. J.

— On the 17th day of January, 1882, the-city of New Albany, in this State, acting through its mayor, entered into a written contract with the Gamewell Fire Alarm Telegraph Company for three fire alarm strikers and five signal boxes, to be completed and placed in position by the 1st. * day of April, then ensuing, for the aggregate sum of $3,325. [474]*474On the 15th day of April, 1882, Charles Sackett, a citizen and taxpayer of that city, filed his complaint, verified by his oath, in the Floyd Circuit Court, making defendants thereto the said city of New Albany, the members of its common •council, its mayor, treasurer and clerk and said fire alarm telegraph company, and alleging that the taxable property of said city amounted to the sum of $6,649,465; that the indebtedness of said city, at the time the contract was entered into, had reached and still constituted the aggregate sum of $390,000, being more than two per centum of the taxable property of such city; that there was no money in the treasury of said city which could be applied in payment for the fire alarm strikers and signal boxes contracted for as above stated; that said city, acting through its common council, was threatening to direct and was about to require its clerk to draw, and its mayor to sign, an order in writing on its treasurer in favor of the above named fire alarm telegraph company, for the sum agreed to be paid for the fire alarm strikers and signal boxes; that if such an order should be issued it would be in violation of the thirteenth article of the constitution of this State, and consequently void, but the order would be liable, nevertheless, to be thrown upon the market as an ■obligation representing an indebtedness, and in many ways to involve the city in litigation, expense and trouble. Wherefore the plaintiff demanded that the defendants might be enjoined and inhibited from issuing an order on the treasurer of said city or other written obligation on account of such fire alarm strikers and signal boxes, and all other appropriate relief.

A temporary restraining order was accordingly granted, on the same day, by the judge of the Floyd Circuit Court. At the ensuing May term the defendants moved the court to dissolve the restraining order upon the ground that the complaint •did not contain facts sufficient to entitle the plaintiff to main- •- tain such proceedings against them. They also demurred to the complaint for substantially the same cause.

The court took both the motion to dissolve the restraining [475]*475order and the demurrer to the complaint under advisement, and, by agreement of parties, entered an order continuing the restraining order in force until otherwise further ordered.

At the September term following the court sustained the motion of the defendants to dissolve the restraining order, and made an order formally dissolving it.

The plaintiff has appealed, under the provisions of section 646 of the E. S. of 1881, permitting appeals from certain interlocutory orders, and has assigned error upon the decision •of the court dissolving the restraining order as above stated.

The thirteenth article of the Constitution, as adopted on the 14th day of March, 1881, and referred to in the complaint, veads as follows:

“No political or municipal corporation in this State shall •ever become indebted, in any manner or for any purpose, to an amount, in the aggregate exceeding two per centum on the value of the -taxable property within such corporation, to be ascertained by the last assessment for State and county taxes previous to the incurring of such indebtedness; and all bonds •or obligations, in excess'of such amount, given by such corporation, shall be void.”

To this is added a proviso, that through certain proceedings, an indebtedness to a greater amount may be incurred in time of war, foreign invasion, or other great public calamity; butthe complaint showed affirmatively that the contract sought to be enjoined did not fall within any of the exceptions contained within the proviso.

The controlling question in this case is, did the averments •of the complaint bring the indebtedness arising out of the •contract between the city of New Albany and the Game well Eire Alarm Telegraph Company within the inhibition imposed by the thirteenth article of the Constitution, supra?

Counsel for the appellees admit that the phraseology of this ¡article of the Constitution is broad enough, abstractly consid•ered, to prohibit the several cities of the State from voluntarily incurring any indebtedness, without reference to the [476]*476purpose of its creation, in excess of two per centum of its. taxable property, but insist that, taking into consideration the-evils intended to be remedied by the adoption of the article, as well as the general condition of the municipal affairs of the State at the time of its adoption, its inhibition ought not to be construed as applicable to debts contracted on account of the current and ordinary expenses of the respective municipalities to which it refers.

The State of Illinois has a constitutional provision very similar to the one set out as above, the only material difference as applicable to this case being that in that State the inhibition extends only to all indebtedness in excess of five per centum of the taxable property of the various municipal corporations within its limits. In the ease of City of Springfield v. Edwards, 84 Ill. 626, a case quite analogous to this in its essential facts, the Supreme Court of that State very aptly said:

“ In considering what construction shall be given to a constitution or a statute, we are to resort to the natural signification of the words employed, in the order and grammatical arrangemeiit in which they are placed; and if, when thus regarded, the words embody a definite meaning, which involves; no absurdity, and no contradiction between different parts of the instrument, then such meaning is the only one we are at liberty to say was intended to be conveyed.”

In defining what constituted an indebtedness within the meaning of the constitutional provision of that State, that court further said: If a contractor undertaking contemplates, in any contingency, a liability to pay, when the contingency occurs the liability is absolute — the debt exists — and it differs from a present, unqualified promise to pay, only in the manner by which the indebtedness was incurred. And, since the purpose of the debt is expressly excluded from consideration,.it can make no difference whether the debt'be for necessary current expenses, or for something else.” • It was further held in that case that where a city has made suitable provision for the [477]*477discharge of an obligation resting upon it, or has the ready means necessary to pay a claim against it, the issuance of an order upon its treasurer for the payment of such obligation or claim does not create such a debt against the city as the •constitutional provision, then under consideration, was intended to inhibit.

The conclusion then reached, however, was that certain warrants issued by the city of Springfield, exceeding the constitutional limit of indebtedness, and payable at a future day, and contingently ás to interest, when there were no funds in its treasury, had been unlawfully issued, and the judgment below, enjoining the further issuance of such warrants, was affirmed. This case was approved and followed by the later •case of Law v.

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Bluebook (online)
88 Ind. 473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sackett-v-city-of-new-albany-ind-1883.