State Ex Rel. Johnson v. Boyd

28 N.E.2d 256, 217 Ind. 348, 1940 Ind. LEXIS 186
CourtIndiana Supreme Court
DecidedJune 28, 1940
DocketNos. 27,378, 27,377, 27,379, respectively.
StatusPublished
Cited by24 cases

This text of 28 N.E.2d 256 (State Ex Rel. Johnson v. Boyd) 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
State Ex Rel. Johnson v. Boyd, 28 N.E.2d 256, 217 Ind. 348, 1940 Ind. LEXIS 186 (Ind. 1940).

Opinion

Swaim, J.

Separate actions were filed in the name of the State of Indiana on the relation of Joseph M. Johnson and Sarah E. Johnson, taxpayers of the school city of Vincennes, Indiana, for the benefit of themselves and all other taxpayers of said school city, seeking to recover for the use and benefit of the said school city on the school treasurer bonds given by Claudius L. Boyd, as principal, and United States Fidelity & Guaranty Company as surety; by William A. Viets, as principal, and American Employers’ Insurance Company of Boston, Massachusetts, as surety; and by Raymond J. Krack, as principal, and American Employers’ Insurance Company of Boston, Massachusetts, and The Metropolitan Casualty Insurance Company of New York, as sureties. Said Boyd was the treasurer of said school city during the school year 1933-34, said Viets during the school year 1934-35, and said Krack during the school years of 1935-36, 1936-37.

Each of said complaints was the same in all essentials except as to the defendants and as to the amounts *354 alleged to have been illegally paid by said' respective treasurers from the school funds of said school city.

In each complaint it was alleged that the particular defendant treasurer had “improperly, unlawfully, wrongfully and in violation of the covenants of his •said bonds, diverted, misappropriated, paid out, disbursed and expended from the common school funds and other school revenues of said school city,” large amounts of money; that said monies were “paid out and disbursed, in aid of certain private, religious, sectarian and theological institutions, to-wit: private Roman Catholic parochial schools within said city of Vincennes”; that said payments in specified amounts were made to certain individuals who were Catholic Sisters; that none of said Sisters “to whom said payments were made, as aforesaid, were employed as' teachers, or otherwise, in any of the lawfully, properly and regularly constituted public schools of said school city; that all of said expenditures were misappropriated, diverted and paid in the aid, benefit and support of said parochial schools; that said schools now are, and at the time of all of said payments to them were, private, sectarian and denominational institutions controlled by, and maintained under, the creed and influence of the religious organization known as the Roman Catholic Church; that said schools are directed and controlled through the clerical government of said church, exercised by and through the Bishop thereof, as the titular head of the Indianapolis diocese of said church; that said sisters, to whom said payments were made, neither received nor retained said payments as their own secular or private property or income, or any part thereof; . . . that the payment of said moneys to said sisters was a mere subterfuge to subsidize said schools and make donations from the school treasury to *355 said church through said schools and through said sisters ; that said disbursements were made in furtherance of an unlawful scheme to accomplish, indirectly, that which . . . could not be done directly; that all of said payments were withdrawals from the school treasury of the City of Vincennes, as subsidies for the aid and support of said private and religious institutions; that all of said disbursements complained of gave preference to a sectarian creed and religious societies and prevented the administration of a general and uniform system of public schools in said city of Vincennes and extended special privileges to children of a particular religious faith.”

Said complaint prayed judgment for and on behalf of the taxpayers of said school city for the use and benefit of said school city against the said defendant treasurers, as principals, and against their sureties, as such, for all of said sums so expended together with certain interest and penalties thereon.

The defendants in each of said cases filed answers in general denial and special answers alleging that the amounts claimed by the plaintiffs to have been illegally paid were paid as teachers’ salaries to teachers who were hired to and did teach in the public schools of said school city, under written contracts with the board of school trustees.

The three cases were consolidated for trial. There were special findings of fact and conclusions of law and the judgment-in each case was for the defendants, from which judgments these three separate appeals are prosecuted.

The assignments of error and propositions in support thereof are the same in each appeal and we shall, therefore, discuss them as if they constituted one appeal.

*356 The facts essential to the determination of the questions presented by this appeal, as disclosed by the special findings are substantially as follows: On July 28, 1933, a committee of priests of the Roman Catholic Parishes in the school city of Vincennes, advised the Board of School Trustees of said city that the Catholic Parochial Schools within the said school city would not be opened by the churches for the ensuing school year and asked said school trustees to provide necessary school facilities for the eight hundred school children who had theretofore attended the said parochial schools, to-wit: St. Francis Xavier, St. John’s Sacred Heart, St. Rose Academy, and Gibault. Thereupon the Board of Trustees of said school city passed a motion that they “assume the administrative and instructional obligation for the Catholic Parochial Schools included within the limits of said School City, in accordance with the constitutional and statutory laws of the state, the rules and regulations of the State Department of the Board of Education and the existing rules and regulations of the Board of School Trustees of the City of Vincennes with a definite understanding that the school city of Vincennes assumes no outstanding, existing or future financial obligations, either bonded temporary loans or other evidences of indebtedness, or the operation, maintenance and capital outlay costs for buildings and grounds belonging to the Catholic Parochial Schools”; and at the same time the board authorized the superintendent to proceed at once and work out the administrative details of the proposed plan of incorporation. On March 18, 1935, said board adopted a resolution, to be effective at the close of the school year 1934-35, rescinding said original motion. On August 25, 1935, said board of school trustees adopted a .resolution *357 reconsidering and amending the resolution of July 28, 1933, as follows:

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Bluebook (online)
28 N.E.2d 256, 217 Ind. 348, 1940 Ind. LEXIS 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-johnson-v-boyd-ind-1940.