Simpson v. Tobin

367 N.W.2d 757, 1985 S.D. LEXIS 264
CourtSouth Dakota Supreme Court
DecidedMay 1, 1985
Docket14096, 14619
StatusPublished
Cited by102 cases

This text of 367 N.W.2d 757 (Simpson v. Tobin) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simpson v. Tobin, 367 N.W.2d 757, 1985 S.D. LEXIS 264 (S.D. 1985).

Opinions

HERTZ, Circuit Judge.

This is an appeal by appellant Tommy Drake Tobin (Tobin) from a final judgment disallowing a claim for legal services filed by Tobin and approved and paid by a majority of the members of the county commission of Tripp County, South Dakota (Appeal # 14096). Appeal is also taken from the supplemental judgment entered by the trial court, which held House Bill 1266 unconstitutional (Appeal # 14619). The South Dakota State’s Attorneys Association was authorized by this court to file an amicus curiae brief as to the constitutionality of House Bill 1266.

Appeal # 14096 stems from an action brought by appellees on behalf of the taxpayers of Tripp County against Tobin for the recovery of $101,691.79 paid to Tobin for certain legal services rendered pursuant to an agreement between Tobin and the county commission.

Tobin at all times material to the action was the duly elected and acting state’s attorney of Tripp County, South Dakota. By a resolution duly passed on April 13, 1976, the Tripp County Board of County Commissioners authorized Tobin to proceed with certain litigation in federal or state court. A “Memorandum of Understanding” was executed on October 31, 1978, confirming the agreement and prescribing that certain hourly fees and costs be paid for such services. This “Memorandum of Understanding” was signed by two of the county commissioners and by Tobin.

On January 5, 1982, Tobin accepted a check in the sum of $101,691.79. Four days later appellees commenced a taxpayer action seeking a refund of the payment.

The trial court subsequently ruled that the payment was illegal and by a judgment dated December 20, 1982, Tobin was ordered to reimburse Tripp County.

By order of this court Appeal # 14096 was remanded to the trial court with instructions to make a determination on the constitutionality of House Bill 1266. The trial court entered a supplemental judgment declaring House Bill 1266 unconstitutional. This judgment is the subject of Appeal # 14619. Appeals # 14096 and # 14619 were then consolidated for argument and disposition.

The issues raised by this consolidated appeal are stated under appropriate.headings and are separately treated in this opinion.

I. Is judicial review of county commission action as provided for in SDCL 7-8-27 and 7-8-28 et seq. an exclusive remedy?

Appellee taxpayers alleged a cause of action for the recovery of public funds illegally expended under an invalid contract. Tobin urges that appellees were required to appeal either under the provisions of SDCL 7-8-27 or SDCL 7-8-28, and having failed to perfect such an appeal, are barred from pursuing reimbursement of claimed illegally expended funds by suit against him.

The pertinent part of SDCL 7-8-27 provides: “From all decisions of the board of county commissioners upon matters properly before it, there shall be allowed an appeal to the circuit court by any person aggrieved....” It is apparent and Tobin admits, that appellees are not “person[s] aggrieved” under this statute. This court has declared that this statute provides for an appeal from decisions of the board of county commissioners only to such persons who suffer personal or individual grievances, as distinguished from those grievances suffered by taxpayers or the public generally. Houser v. Olmstead, 57 S.D. 41, 230 N.W. 224 (1930). Therefore, this claimed right of appeal was not available to appellees.

SDCL 7-8-28 sets forth the procedure for general taxpayers’ challenges to county commission action:

[761]*761Upon written demand of at least seven taxpayers of the county, the state’s attorney shall take an appeal from any action of such board when such action relates to the interests or affairs of the county at large or any portion thereof, in the name of the county, when he deems it to the interest of the county so to do[.]

This statute requires that at least seven taxpayers concur in the action; that the state’s attorney exercise his discretion in determining the merits of the action; and that the action be commenced in the name of the county. SDCL 7-16-2 provides for the appointment of a state’s attorney pro tern where the state’s attorney refuses to act or has a conflict of interest, as is the situation in the instant case.

This court has held on a number of occasions that the strict limitations on the availability of taxpayer challenges to county commission action were enacted to help reduce the number of lawsuits brought by taxpayers in order to prevent continued and unnecessary interference with the conduct of public affairs. Holmes v. Miller, 71 S.D. 258, 23 N.W.2d 794 (1946); State v. Richards, 61 S.D. 28, 245 N.W. 901 (1932). Essentially all of these cases stand for the proposition that where there is a remedy by appeal, that remedy must be followed, rather than actions in equity or at common law. It is to be noted, however, that none of the cases cited by Tobin involve the payment of public funds to a part-time state’s attorney, and there are special statutory restrictions applicable in such cases, as pointed out later in this opinion. In this case, of course, the remedy by appeal is in effect no remedy at all since Tobin had been fully paid and it was from him that a refund is sought. In other words, a successful appeal would only declare the illegality of the payment, it would not and could not restore the illegally paid funds since those funds were in the possession of Tobin, who would not have been a party to the appeal.

In a very early case, Campbell County v. Overby, 20 S.D. 640, 642, 108 N.W. 247, 248 (1906), this court recognized the right of a county to recover in an action for illegal expenditures of public funds. The court there said:

The contention that an appeal from the decision of the board allowing defendant’s claim was plaintiff’s only remedy is clearly untenable.‘A county board has no power to audit and allow accounts on their face not legally chargeable to the county, and if it does so, it acts in excess of its jurisdiction, and its action will create no legal liability on the part of the county. In accordance with this rule, it has been held that if an illegal charge has been paid in consequence of an improper allowance an action lies at the suit of the county to recover back the money paid.’ 7 Am. & Eng.Ency.Law (2d Ed.) 960.

This court has specifically recognized common law taxpayer actions for the recovery of public funds illegally paid by municipalities and townships. Hauck v. Bull, 79 S.D. 242, 110 N.W.2d 506 (1961); Carlson v. City of Faith, 75 S.D. 432, 67 N.W.2d 149 (1954). Moreover, such actions are clearly encouraged by our legislature.

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Cite This Page — Counsel Stack

Bluebook (online)
367 N.W.2d 757, 1985 S.D. LEXIS 264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simpson-v-tobin-sd-1985.