State ex rel. Security Savings Society v. Moss

86 P. 1129, 44 Wash. 91, 1906 Wash. LEXIS 793
CourtWashington Supreme Court
DecidedSeptember 26, 1906
DocketNo. 6237
StatusPublished
Cited by9 cases

This text of 86 P. 1129 (State ex rel. Security Savings Society v. Moss) is published on Counsel Stack Legal Research, covering Washington 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. Security Savings Society v. Moss, 86 P. 1129, 44 Wash. 91, 1906 Wash. LEXIS 793 (Wash. 1906).

Opinion

Hadley, J.

This action was brought to procure a writ of mandate to compel the treasurer of the town of Medical Lake to pay certain general fund warrants issued by said town. The treasurer declines to pay them, on the ground that they do not represent a valid 'indebtedness against the town. The judgment was against the relator, the holder of the warrants, and it has appealed.

The town of Medical Lake was incorporated under the act of 1888, which act was thereafter declared'void by this court. The town reincorporated under the act of 1890, and. the reincorporation became effective June 12, 1890. It has been a municipal corporation of the fourth class under the laws of this state since the last named date. On the 17th day of Mny, 1889, the officers of the then void corporation entered into a contract with one Peter Lund, of the following. import-: In consideration of the sum of $8,645 said Lund agreed to improve Broad street in said town according to [93]*93plans and specifications then on file. The town undertook to pay for the work upon the completion of the contract, and agreed in the contract to proceed at once to levy a special assessment upon the property fronting upon the street to be improved, for the purpose of paying the contract amount. It was also agreed that the town should collect and pay over to the contractor the amount of such assessments without delay and in the shortest time possible under its charter and ordinances. It was further agreed that, if payment should become due and if the town should not have received sufficient money from such special assessments to make the payment, it should issue to the contractor its warrants for the amount of the deficiency, payable to him or his order “out of said fund.” The contract also contained the following:

“And the said town of Medical Lake further agrees that, in case such warrants are issued and accepted by said Peter Lund, it will redeem and pay them before due, if presented, as fast as and whenever it collects and receives the money from such special assessments.”

The work was completed, warrants were issued, and about $5,000 of the amount was collected and paid over. The remaining warrants were unpaid and were outstanding and unredeemed at the time of the reincorporation.

After the reincorporation and on the 18th day of November, 1890, the council of the newly incorporated town passed an ordinance designated as No. 20 and entitled “An ordinance to ratify and confirm certain indebtedness of the town of Medical Lake.” Section 1 of the ordinance contained the following:

“The following indebtedness heretofore incurred by the town of Medical Lake as heretofore incorporated . . . is hereby confirmed, ratified, recognized, and declared to be indebtedness of the town of Medical Lake as now organized.”

Among other warrants mentioned in the section as representing indebtedness which was ratified, a number of the warrants issued for the Broad street improvement were sped[94]*94fied, the aggregate face amount of which was $2,537.10. Thereafter, on the 7th day of July, 1896, the council passed an ordinance known as Ordinance No. 67, and which was entitled as follows: “An ordinance providing for the changing of certain street grade warrants for general fund warrants.” After a preamble, § 1 of the ordinance is as follows:

“That the mayor and town clerk be and are hereby authorized on the presentation to them of any grade fund warrants on either LeFevre or Broad street, to cancel the same and issue in lieu thereof warrants for the same amount and bearing the same date upon the general fund of the town of Medical Lake.”

In pursuance of said ordinance above mentioned, unredeemed Broad street grade fund warrants were surrendered and in lieu thereof general fund warrants bearing the same date as the original grade fund warrants were issued. Appellant seeks by this action to compel payment of the last named warrants.

Appellant contends that the contract for the improvement of Broad street created a general liability against the town, and not merely a liability against a particular district. It concedes that the contract provided for the creation of an assessment district and for a special assessment upon the property contained in the district, and that both parties to the contract proceeded upon the theory that the town had the same authority to create a special assessment district and to levy a special assessment as was conferred upon towns and villages by the act of the territorial legislature concerning special assessments, approved February 2, 1888, Laws 1888, page 16. It is pointed out, however, that the power did not exist under that act for the reason that it was limited in its operation to municipalities having a population of six thousand or more, and that the town of Medical Lake was not such a municipality. With the above-mentioned statute eliminated for the reason stated, appellant argues that the general incorporation act of 1888 also failed to attempt tc con[95]*95fer the power to create special assessment districts. Section £3 of that act, Laws 1888, page ££4, refers to the powers concerning streets, and is as follows:

“To have streets and alleys opened, graded and repaired and the footways and sidewalks paved or planked at the expense of the occupants of the adjacent lots, or if any such owner or occupant fails to open, repair or pave or plank the same as required by ordinance, such board of trustees may cause the same to be done and may recover the full expense thereof, and the costs of the proceedings to obtain such recovery from such owner or occupant by action in the name of the corporation before any court of competent jurisdiction, and if any tenant be required to open, grade, repair or plank in front of the property occupied by him, the expense thereof is a good set-off against so much rent due the owner; but no tenant can be required to expend more than the rent due, and such charges are a lien upon the property and may be enforced and collected as other liens.”

The first part of the above section was clearly intended to confer the power to improve streets at the expense of adjacent property, and that power by necessary inference included the further power to arrange a scheme for assessment districts in order to carry the expressed power into effect. Appellant argues, however, that the power was not intended to be included in the statute; that that part of the Broad'street contract which provided for issuing special fund warrants in payment of the contract price was unauthorized by the terms of the statute; and that the legal effect of the contract must therefore have been that the town agreed generally to pay for the work and to assume the burden of recovering the expenditure from the property owners. The inference is therefore drawn that there was a general promise to pay on the part of the town, made before its legal existence, and that such promise was ratified and became enforcible against the taxpayers after the legal incorporation. We have said we think the statute should be construed as having been intended to include the power to make special assessments. Then, in [96]*96the light of the terms of the statute and in view of the contract and what was done by the contractor and the people within the territory that afterwards became the town of Medical Lake, what did they intend and undertake to do? An ordinance was passed for the grading of Broad street.

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Cite This Page — Counsel Stack

Bluebook (online)
86 P. 1129, 44 Wash. 91, 1906 Wash. LEXIS 793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-security-savings-society-v-moss-wash-1906.