State ex rel. Kaufman v. Davis

229 N.W. 105, 59 N.D. 191
CourtNorth Dakota Supreme Court
DecidedFebruary 11, 1930
StatusPublished
Cited by17 cases

This text of 229 N.W. 105 (State ex rel. Kaufman v. Davis) is published on Counsel Stack Legal Research, covering North Dakota 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. Kaufman v. Davis, 229 N.W. 105, 59 N.D. 191 (N.D. 1930).

Opinion

CheistiaNSON, J.

Tbis is an action to enjoin tbe members of tbe board of administration of tbe state of North Dakota from granting a permit to, and entering into any arrangement with, tbe Agricultural College Dormitory Association of Fargo, North Dakota, for tbe erection of a dormitory on tbe campus of tbe Agricultural College of tbis state, and from entering into any contract or arrangement with said Dormitory Association with regard to tbe construction, maintenance or leasing of such dormitory. Tbe complaint alleges that tbe relator is a citizen and a taxpayer of tbe state of North Dakota and brings tbis action in behalf of himself and all other persons similarly situated. It is alleged that tbe Agricultural College Dormitory Association of Fargo, North Dakota, has been incorporated under tbe provisions of chapter 102 of tbe Laws of North Dakota for 1929. That said Dormitory Association was organized for tbe purpose of erecting a dormitory at the-Agricultural College at Fargo, North Dakota, and that said board of administration has approved of tbe organization of said dormitory association and intends to and will, unless restrained by tbe court, forthwith enter into an agreement with said association for tbe construction of a dormitory under tbe provisions of chapter 102 of tbe Laws of 1929; and that said board of administration will further enter into a contract with said Association for tbe renting of said dormitory. It is further alleged that said chapter 102 of tbe Laws of 1929 is unconstitutional and void for tbe following reasons:

1. That it delegates legislative power to tbe state board of administration in contravention of § 25 of tbe state constitution.
2. That tbe authority given therein to tbe state board of administration “to lease” a part of tbe campus of tbe Agricultural College (and certain other educational institutions of tbe state) to an institutional [196]*196bolding association for a period not exceeding fifty years contravenes §§ 159 and 161 of tbe state Constitution.
3. That tbe provisions thereof wbicb purport to authorize tbe conveyance, of a portion of tbe campus and tbe assignment of tbe rentals of a dormitory constructed thereon to an institutional bolding association contravenes §§152 and 159 of the state Constitution.
4. Tbat tbe act authorizes tbe board of administration to make a donation of state property, or to loan or give tbe credit of tbe state to tbe institutional bolding association in contravention of section 185 of the constitution.
5. Tbat tbe act violates § 11 of tbe state Constitution wbicb provides tbat all laws of a general nature shall have uniform operation.
6. Tbat the act authorizes tbe board of administration to create an obligation of tbe state in excess of tbe debt limit of tbe state as prescribed in § 182 of tbe state Constitution.
7. Tbat tbe provisions of tbe act wbicb purport'to exempt from taxation any dormitory tbat may be erected and any equipment installed therein by tbe bolding association, and all bonds and other evidences of indebtedness issued by such association, contravene § 20 of tbe Constitution (wbicb provides that no citizen or class of citizens shall be granted privileges or immunities wbicb, upon tbe same terms, shall not be •granted to all citizens) ; subdivision 29 of § 69 of tbe Constitution, '(which provides tbat tbe legislative assembly shall not pass any local or special laws exempting property from taxation), and § 176 of tbe Constitution (wbicb provides tbat taxes shall be uniform upon tbe same class of property, including franchises within tbe territorial limits of tbe authority levying the tax; but tbat tbe legislature may by law exempt any or all classes of personal property from taxation and tbat within tbe meaning of this section fixtures, buildings or improvements of any character upon land shall be deemed personal property; and tbat tbe property of tbe United States and of tbe state, county and municipal corporations'and property used exclusively for school, religious, charitable or other public purposes shall be exempt from taxation).

There is no allegation and no claim tbat tbe board of administration is acting, or is about to act, contrary to the provisions of chapter 102, supra. On tbe contrary, tbe basis of tbe action here is tbat such board [197]*197is proceeding to act and, unless restrained, will act, strictly in conformity with the provisions of that statute; and the claim is that by so acting it will infringe upon certain rights guaranteed to the plaintiff, and others of his class, by the Constitution of this state.

The defendants interposed a general demurrer to the complaint. The demurrer was sustained and the plaintiff has appealed.

The sole questions argued on this appeal relate to the validity of chapter 102, Laws 1929, which reads as follows:

“Sec. 1. Nonprofit sharing corporations to be known as institutional holding associations may be formed in the manner, for the purposes and with the powers, obligations and limitations prescribed by chapter 12 of the Civil Code of the Compiled Laws of 1913; except as herein otherwise provided.
“Sec. 2." Such association shall have power (1) to erect, equip, operate, manage, lease or sell, as herein provided, dormitories and their necessary equipment and appurtenances, to be located either upon the campus of the state university, the agricultural college, any of the normal schools or other state educational institutions, or upon sites in the vicinity of such campus, purchased or otherwise acquired by such association, or as an addition to an existing dormitory at any such edu-' cational institution, and to be at all times used and operated solely for educational purposes in connectiton with any of such educational institutions; (2) to borrow money or contract debts for any or all of the aforesaid purposes and to issue bonds or other evidences of indebtedness therefor; (3) to secure the payment thereof by mortgaging and pledging any or all of its property, real or personal, including income.
“Such association shall be sribject to the following limitations and restrictions:
“(1) Such dormitories, their equipment and appurtenances, shall only be erected and installed according to plans and specifications therefor first approved by the state board of administration and at a cost for site, building and equipment to be fixed by it within the maximum limit hereinafter provided.
“(2) Such dormitories, their equipment and appurtenances shall at all times be owned, managed, operated and conducted by such association, its successors or assigns, solely for the educational purpose herein [198]*198provided in connection with one of such educational institutions and under tbe control and supervision of said board of administration and under and according to such rules and regulations, including rental charges, as shall be prescribed by it.
“(3) Such association shall be nonprofit sharing; no corporate stock shall be issued and no member shall have or acquire any divisional or other share or interest in any of its property.

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Bluebook (online)
229 N.W. 105, 59 N.D. 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-kaufman-v-davis-nd-1930.