Scott v. Hayes

70 N.E. 879, 162 Ind. 548, 1904 Ind. LEXIS 81
CourtIndiana Supreme Court
DecidedApril 29, 1904
DocketNo. 20,236
StatusPublished
Cited by3 cases

This text of 70 N.E. 879 (Scott v. Hayes) 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
Scott v. Hayes, 70 N.E. 879, 162 Ind. 548, 1904 Ind. LEXIS 81 (Ind. 1904).

Opinion

Dowling, J.

The appellees were the owners of certain street improvement bonds issued by the city of Kokomo under §4296 Burns 1894 of the act generally known as the Barrett law, and the amendments thereof, for the purpose of anticipating the collection of assessments. The appellant owned six lots bordering upon the part of the street improved, and, in consideration of the privilege of paying his assessment in ten annual instalments, he executed the agreement provided for by the statute, waiving all illegality and irregularity in the proceedings, and expressly promising to pay the sum of the assessments. He failed to make such payments, and this action was brought by the appellee to enforce the lien of the assessment against the said lots, and to recover a personal judgment against the appellant for any deficiency in case the lots did not sell for enough to pay the amount of the assessment, interest, attorney’s fees, and costs. A demurrer to the complaint was overruled. The defendants, Scott and wife, filed an answer in three paragraphs, the first of which was a general denial, the second a plea of payment, and the third, addressed to so much of the complaint only as sought the recovery of attorney’s fees and penalties denied that the defendants agreed to pay such fees and penalties, and averred that they promised to pay the assessments with interest and nothing more. The defendant Enos A. Scott filed a separate answer of want of consideration for his promise to pay the assessments. Replies in denial. Trial by the court, and finding for the plaintiff. Motion by appellant Enos A. Scott for a new trial overruled. Judgment on finding. Separate motions to modify the judgment by striking out each part thereof declaring a personal liability of Enos A. Scott for the assessment, the interest, and the attorney’s fees. These motions were overruled. Error is assigned upon all these rulings.

The first objection taken to the complaint is that no default of the city of Kokomo in collecting the assessments [550]*550is averred; and, second, that it does not appear that a’ resolution was passed by the common -council authorizing the plaintiff to bring this action.

. The bonds in question were issued under §4296 Burns 1894, for the purpose of anticipating the collection of the assessments for the improvement. Sections 4290, 4294 Burns 1894 authorized the owner of such bonds to sue upon the same, and -to enforce their collection by foreclosure or otherwise. No resolution of the council was necessary, nor was it requisite, before suit, that a demand should be made- upon the city to pay or to collect such bonds. Martin v. Wills, 157 Ind. 153. Section 4297 Burns 1894 provides that the certificates and bonds therein named shall transfer to the contractor and his assigns all the right and interest of such city or town in and to every such assessment, and the'lien thereby created against the property of such owners assessed as shall avail themselves of the provisions of the act to have their assessments paid in instalments. It further- declares that such certificates or bonds shall authorize such contractor and his assigns to receive, stie for, and collect every such assessment embraced in any such certificate or bond by or through any of the methods provided by law for the collection of assessments for local improvements, including the provisions of the statute under consideration. The section contains the further provision that if the city or town shall fail, neglect, or refuse to pay said certificates or bonds, or promptly to collect any of such assessments when due, the owner of any of such certificates or bonds may proceed in his own name to collect such assessment, and foreclose the lien thereof in any court of competent jurisdiction, and that he shall recover, in addition to the amount of such bonds or certificates and the interest thereon, a reasonable attorney’s fee, together with the costs of such suit. It would seem that this section applies more particularly to cases where the certificates or bonds are issued directly to [551]*551the contractor; but, if it can be construed, in connection with the other sections of the statute, to include a case where the bonds are issued by the city under §4296, supra, in anticipation of the collection of the assessments, then it expressly authorizes' the owner of the bonds to sue in his own name in any court of competent jurisdiction, and the averment of the complaint that the city of Kokomo “failed and refused to pay said past-due bonds and interest coupons” brought the claim of the plaintiff within the very terms of this section.

The next point made by counsel for appellant is that by the amendment of March 3, 1893 (Acts 1893, p. 283, §1, §4295 Burns 1894), the form of the written stipulation waiving objections to the proceedings on account of irregularity or illegality was so changed that it was not required to contain a promise to pay the assessments, and therefore that so much of the agreement signed by the appellant Scott as amounted to a promise to pay the assessment was not authorized by law, and was void for want of consideration.

Section two of the act of March 6, 1891 (Acts 1891, p. 323, §4294 Burns 1894), contained this provision: “Should any one of such assessments exceed the sum of $50, then if the owner of the lot or parcel against which said assessment is made, may, if he, within two weeks after the making of such assessments, shall promise and agree, in writing, * * * in consideration of the right to pay his or their assessment, or respective assessments in instalments, that they will not make any objections to illegality or irregularity as to their respective assessments, and will pay the same, with interest thereon, at the rate of not, exceeding six per centum per annum, as shall by ordinance or resolution of the common council of such city * * *- be prescribed and required, he or they shall have the benefit of paying said assessments in ten annual instalments, as hereinafter ■ provided.” (Sic.) This part of [552]*552section, two was extended March 3, 1893 (Acts 1893, p. 283, §4295 Burns 1894), as follows: “Section 1. That the privilege now granted by law to persons assessed for the construction of street or alley improvements, or sewers, to pay the same in ten years in instalments, if such assessment exceed $50 upon any one lot, shall be extended to all persons, without regard to the sum assessed: Provided, they shall execute the stipulation waiving objections on account of illegality or irregularities in the proceedings of assessment, as is now required by law in cases of assessments exceeding $50.” The sole and evident purpose of the later act was to extend the benefit of the former statute to lot owners whose assessment upon any one lot was $50 or less. There was no intention to change the conditions on which the privilege of paying the assessment in ten annual instalments depended. The reference to “the stipulation waiving objections on account of illegality or irregularities in the proceedings” was made only for the identification of that part of the section amended. The “stipulation waiving illegality or irregularities in the proceedings required by law” expressly provided, as one of its conditions, that the lot owner should promise to pay the assessment; and the privilege of paying in ten annual instalments was extended to all persons, without regard to the sum assessed, upon the same terms as that privilege was previously offered to lot owners whose assessment exceeded $50 on a lot.

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Cite This Page — Counsel Stack

Bluebook (online)
70 N.E. 879, 162 Ind. 548, 1904 Ind. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-hayes-ind-1904.