State Ex Rel. Schones v. Town of Canute

1993 OK 90, 858 P.2d 436, 64 O.B.A.J. 2091, 1993 Okla. LEXIS 109, 1993 WL 229827
CourtSupreme Court of Oklahoma
DecidedJune 29, 1993
Docket74939
StatusPublished
Cited by24 cases

This text of 1993 OK 90 (State Ex Rel. Schones v. Town of Canute) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Schones v. Town of Canute, 1993 OK 90, 858 P.2d 436, 64 O.B.A.J. 2091, 1993 Okla. LEXIS 109, 1993 WL 229827 (Okla. 1993).

Opinions

HARGRAVE, Justice.

We granted certiorari to determine whether resident taxpayers’ suit to recover the penalty provided in 62 O.S. § 372 is barred by the one-year statute of limitations of 12 O.S.1981 § 95(4).1 The trial court dismissed the action, presumably finding that the statute of limitations barred suit. The Court of Appeals reversed, relying on State ex rel. Board of County Commissioners v. Shelton, 727 P.2d 103 (Okla.App.1986), holding that where suit is brought on behalf of the state to enforce a “public right,” the statute of limitations will not bar the suit by the sovereign. Because we find that a suit [437]*437brought by the proper officers of the Town of Canute in this case would not be barred by the statute of limitations, we find that the taxpayers’ suit was timely filed. The applicable statutes are 62 O.S.Supp.1982 § 3722 and 62 O.S.1981 § 373.3

This case involves suit brought by plaintiffs, resident taxpayers of the Town of Canute, pursuant to 62 O.S. § 373, against numerous individual defendants, including the former mayor and clerk/treasurer, alleged to be members of the Board of Trustees of Canute during a period from 1979 to 1985. The Town of Canute was named a defendant, as required by the statute. Plaintiffs pled twelve “causes of action”: (a) four violations of competitive bidding provisions of city ordinances, (b) seven instances of wrongful approval of purchase orders under void contracts in violation of 62 O.S. § 371, and (c) one claim for damages to the Town of Canute and its residents for a contract for removal of a water tank, contrary to Canute city ordinances, which allegedly damaged Canute in amount of two thousand dollars ($2,000.00) for the value of the tank, and three thousand dollars ($3,000.00) as damages caused by depriving the city of a backup water supply system. For the first eleven causes of action plaintiffs sought recovery of the amounts paid. Plaintiffs then prayed for recovery of triple the amount wrongfully paid on each of the causes pursuant to § 372. Only three of the claims stated the date of the transaction and those dates were in 1979 and 1982.

The taxpayers, on February 10, 1989, made written demand upon the city officials to file suit. The city officials did not file suit and plaintiffs’ suit was filed July 28, 1989. Defendants moved to dismiss on grounds the action was barred by the statute of limitations, and the trial court entered an order of dismissal. Suit was brought by the taxpayers within six months of written demand being made; the question is whether the cause already was time-barred when demand was made.

Two lines of authority create confusion. A line of early cases held (or assumed) that [438]*438the statute of limitations would run against the state or political subdivision in § 372 and § 373 cases where suit was for recovery of the penalty. See, State ex rel. Lockhart v. Board of Commissioners of Lincoln County, 197 Okla. 605, 173 P.2d 725 (1946), Cummings v. Board of Education, 190 Okla. 533, 125 P.2d 989 (1942), Battles v. Conner, 182 Okla. 613, 79 P.2d 232 (1938), State ex rel. Estill v. Board of Commissioners of Pontotoc County, 119 Okla. 215, 249 P. 394 (1926), State ex rel. Gooch v. Drumright, 88 Okla. 244, 212 P. 991 (1923), State ex rel. Schilling v. Oklahoma City, 67 Okla. 18, 168 P. 227 (1917), Territory ex rel. Johnston v. Woolsey, 35 Okla. 545, 130 P. 934 (1913). In those eases, apparently no argument was raised that the statute of limitations would not run against the sovereign or that the suit was for vindication of a “public right.”

Another line of cases, which did not involve suit for recovery of a penalty, held that the statute of limitations would not bar a suit by the sovereign or political subdivision suing in their sovereign capacity for vindication of public rights. See, Foote v. Town of Watonga, 37 Okla. 43, 130 P. 597 (1913), State ex rel. Land Commissioners v. Hall, 191 Okla. 257, 128 P.2d 838 (1942), Wooten v. State ex rel. Commissioners of the Land Office, 191 Okla. 306,129 P.2d 584 (1942), Herndon v. Board of County Commissioners of Pontotoc County, 158 Okla. 14, 11 P.2d 939 (1932), Board of County Commissioners v. Good Township, 188 Okla. 151, 107 P.2d 805 (1940), State ex rel. Cartwright v. Tidmore, 674 P.2d 14 (Okla.1983). The rationale behind these cases is that the public interest shall not be prejudiced by the negligence of the public officers to whose care those rights may be consigned.

Even those cases holding that the statute of limitations would run against the cause of action for recovery of a penalty by the state or political subdivision were not consistent as to when the statute would run against the resident taxpayers. The difficulty was in determining when the taxpayers’ cause of action accrued. Some cases held that demand must be made within the limitations time and others held that the taxpayers’ cause of action did not accrue until demand was made so that the statute did not begin to run against the taxpayers until demand was made. See, for example, State ex rel. Lockhart v. Board of Co. Com’rs of Lincoln Co., 197 Okla. 605, 173 P.2d 725 (1946), State ex rel. Estill v. Board of Commissioners of Pontotoc Co., 119 Okla. 215, 249 P. 394 (1926), State ex rel. Gooch v. Drumright, 212 P.2d 991 (Okla.1923), State ex rel. Schilling v. Oklahoma City, 67 Okla. 18, 168 P. 227 (1917). It appears that the question whether the statute of limitations would run against the sovereign or its subdivisions for recovery of the penalty under § 372 in vindication of public rights had not been specifically addressed.

Both issues were raised in State ex rel. Board of County Commissioners v. Shelton, 727 P.2d 103 (Okla.App.1986). The Court of Appeals held that the statute of limitations would not run against a political subdivision where the Board of County Commissioners sued to recover the § 372 penalty against former county commissioners. Some of the defendants there argued that § 372 is a penal statute and that cause of action was thus barred by 12 O.S. § 95(4), or in any event by the two-year statute of limitations of § 95(3) for fraud. The trial court granted a motion to dismiss and the Board appealed, alleging that it was suing in its sovereign capacity to enforce a public right and was “... immune to bar of statute of limitations or, alternately that no statute of limitations began to run until plaintiff knew or should have known and had evidence to prove elements of its cause of action.” The Court of Appeals held that the county was immune from operation of the statute of limitations. We denied certiorari.

Recently, in City of Oklahoma City v. HTB, Inc., 769 P.2d 131 (Okla.1988), we reaffirmed the rule that, where the State or political subdivision is acting in its sovereign capacity vindicating a “public right”, the statute of limitations will not run against it. In HTB, Inc., which was not a [439]*439suit for recovery of a penalty, we recognized that the maxim nullum tempus oc-currit regí (time does not run against the King) applies to municipal corporations as trustees of the rights of the public.4 We said, 769 P.2d at p. 134:

“From these cases we distill the general rule that statutes of limitation shall not bar suit by any governmental entity acting in its sovereign capacity to vindicate public rights

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State Ex Rel. Schones v. Town of Canute
1993 OK 90 (Supreme Court of Oklahoma, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
1993 OK 90, 858 P.2d 436, 64 O.B.A.J. 2091, 1993 Okla. LEXIS 109, 1993 WL 229827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-schones-v-town-of-canute-okla-1993.