Slabosheske v. Chikowske

77 N.W.2d 497, 273 Wis. 144, 1956 Wisc. LEXIS 313
CourtWisconsin Supreme Court
DecidedJune 5, 1956
StatusPublished
Cited by15 cases

This text of 77 N.W.2d 497 (Slabosheske v. Chikowske) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slabosheske v. Chikowske, 77 N.W.2d 497, 273 Wis. 144, 1956 Wisc. LEXIS 313 (Wis. 1956).

Opinion

Brown, J.

By orders effective May 25, 1949, the school committees of Marquette and Green Lake counties dissolved a number of rural school districts and consolidated their territory with the city of Princeton’s school district under the name of Joint School District No. 2. It will be called herein simply District 2. One of the districts so dissolved was known as District No. 7 and that and the enlarged District 2 are the ones involved in this controversy. On June 13, 1949, following the dissolution, the treasurer of District 7 paid over to the treasurer of District 2 District 7’s bank balance of $2,222.38. District 2 operated the consolidated district pursuant to the school committees’ order during the school year 1949 — 1950.

Sec. 40.303 (14) (a), Stats. 1949, provides:

“Except as provided in paragraph (b), a referendum election may be held to approve any order of a county school committee creating, altering, consolidating, or dissolving school districts entered after August 26, 1947, and prior to July 1, 1949, provided a petition for such referendum election, signed by either 25 per cent of the electors or 1,000 of the electors residing within all of the territory outside the city or village limits of any city or village involved in the proposed reorganized district, ... is filed with the county school committee within thirty days after such reorganized district has been operating one school year under the state-aid system provided by the 1949 legislature. . . .”

*147 Sec. 40.303 (14) (a), Stats. 1949, further provides that the order of dissolution and consolidation “shall not become effective” unless it is approved by a majority vote of the electors of the territory affected by it. The conflict in the demand of the statute that a newly created district shall operate for a school year before being tested by referendum and the provision that the order creating it shall not be effective if disapproved was recognized and dealt with in In re Joint Union Free High School Dist. (1952), 262 Wis. 126, 54 N. W. (2d) 40, in which it was held that the unfavorable result of the referendum did not render the committees’ order void from the beginning but only void after the date of the referendum.

Relying on sec. 40.303 (14), Stats. 1949, electors of the reorganized District 2 on July 20, 1950, filed a petition for a referendum. The referendum was held September 19, 1950, and resulted in a disapproval of the order creating the Princeton city district and attaching the rural districts to it. Proceedings were then brought in the circuit court for Green Lake county by certiorari to test the validity of the referendum. The judgment, dated July 25, 1951, quashed the writ, thus holding the referendum valid and the result of it effective to invalidate the committees’ order dissolving District 7 and creating the consolidated District 2. An appeal taken from that judgment resulted in a decision rendered January 8, 1952, State ex rel. Oelke v. Doepke (1952), 260 Wis. 493, 51 N. W. (2d) 10. This held that the petition for referendum had been filed too late and reversed the judgment of the circuit court. The effect was to determine that the referendum was void and the order dissolving the rural districts and creating District 2 remained valid.

Pending determination of the appeal, however, District 7 relied on the referendum and the circuit court’s judgment concerning it and the district determined to operate in the same manner as it had done before the school committees’ *148 order of dissolution. A school district meeting was held August 6, 1951, at which a school board was elected, given authority to borrow money to defray school operating expenses and incidental charges and a school tax levy was authorized. The meeting was informed and ignored the fact that an appeal was then pending from the judgment of the circuit court upon which the valid revival of District 7 depended. On September 26, 1951, pursuant to the supposed authority conferred on them at the meeting of August 6th, the officers of District 7 borrowed $2,000 from the plaintiffs, upon the promissory note of District 7, which bore interest at four per cent until maturity and thereafter “at the highest rate of interest allowed by law” until paid and further provided for judgment against the maker for principal, interest, and “costs including attorney’s fees of 15 per cent of the amount then unpaid thereon.” The note was signed for the District by Mrs. Clara Chikowske, its clerk, Aloizie Soda, its treasurer, and Tom Chikowske, its director. The note matured and was extended several times by renewals executed by the same persons in the name of District 7. Such renewals were executed after January 8, 1952, when the appeal was determined, and also after June 19, 1952, when in response to the mandate of the supreme court in State ex rel. Oelke v. Doepke, supra, the trial court amended its judgment and finally adjudicated the dissolution of District 7. No issue is raised concerning the validity of these renewals as differing from the validity of the initial note; accordingly we give no consideration to any possible difference, but treat the issue as though no note but the first one is in question. After plaintiffs had thus lent the money the school board proceeded to spend it in paying operating costs of District 7, including some attorney’s fees. The trial court was concerned with the rights of. the plaintiffs and not with the legitimacy of all the expenditures and our interest is likewise limited. During the school years 1949-1950 and 1950 — 1951 the children of *149 District 7 were transported to Princeton and educated there, but following the meeting of August 6, 1951, already referred to, the newly elected officers of District 7 engaged a teacher and conducted a school for that district until January 8, 1952, when the decision of the supreme court was published in State ex rel. Oelke v. Doepke, supra. District 7 then terminated operations and its pupils resumed attendance in the consolidated District 2 in Princeton.

Thereafter there was default in payment of the latest renewal note and on May 12, 1954, the plaintiffs brought the present action upon it against District 2 and, in the alternative, against the signers of the note as individuals. The trial court concluded that the note was originally a valid obligation of District 7 and had become a valid obligation of District 2 as successor to the assets and liabilities of District 7. There was also a conclusion of law that the plaintiffs were entitled to recover in quantum meruit because District 7 had had the benefit of the borrowed money. The judgment, entered November 12, 1955, on the basis of quantum meruit, adjudged District 2 liable to the plaintiffs for $2,403.62, which included principal with interest at four per cent and taxable costs and disbursements of $121.40, but made no allowance of attorney’s fees as provided by the note. A balance of $302.84 stands in a bank to the credit of District 7 and the judgment ordered the bank to pay this to the treasurer of District 2. The judgment also dismissed the complaint against the makers of the note as individuals.

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Bluebook (online)
77 N.W.2d 497, 273 Wis. 144, 1956 Wisc. LEXIS 313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slabosheske-v-chikowske-wis-1956.