State ex rel. Wehe v. Pasco Reclamation Co.

156 P. 834, 90 Wash. 606, 1916 Wash. LEXIS 981
CourtWashington Supreme Court
DecidedApril 11, 1916
DocketNo. 13036
StatusPublished
Cited by2 cases

This text of 156 P. 834 (State ex rel. Wehe v. Pasco Reclamation Co.) 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. Wehe v. Pasco Reclamation Co., 156 P. 834, 90 Wash. 606, 1916 Wash. LEXIS 981 (Wash. 1916).

Opinion

Holcomb, J.

On June 3, 1913, the city of Pasco passed an ordinance authorizing the city to purchase a water supply [607]*607for local improvement district No. 44, which had theretofore been created in the city. By the terms of the ordinance, the city was empowered to purchase the water supply for the sum of $15,000, together with an additional maintenance charge of $900 for the first five years, and thereafter an annual charge of $750, which was payable on or before April 1 of each year, commencing with 1914. Pursuant to the terms of this ordinance, the city entered into a contract with the appellant Pasco Reclamation Company. The terms and conditions of this contract material in disposing of this case are as follows :

“Par. 2. The water right hereby conveyed shall be subject to an annual maintenance charge of nine hundred dollars ($900.00) during the years 1914 to 1918, both years inclusive, and thereafter to an annual maintenance charge of seven hundred and fifty dollars ($750.00).”
“Par. 5. The city shall cause the annual charges mentioned in paragraph 2 hereof to be paid to the company at the time and in the manner therein agreed by means of rentals •duly charged and collected as provided by law against the property within said improvement district.”
“Par. 11. If the annual maintenance charge provided for in paragraph 2 hereof be not paid within the time and in the manner therein specified, or if the city shall fail to perform any other covenant or agreement herein contained by it to be performed, then the company may, at its option, shut off the water from said improvement district and thereafter decline to turn on or deliver said water to said improvement district until such charges are fully paid and until such covenants and agreements are fully performed . . . ”

The ordinance providing for the collection of the maintenance fees is not in any way brought before us.

In April, 1915, which was the second year of the life of the contract, warrants to the amount of $900 were issued by the city to appellant company for the maintenance charge. Appellant company presented these warrants for payment, but payment was refused on account of lack of funds. The evidence tends to show that the levy in 1914 was $929.74; that [608]*608warrants to the amount of $964.89 were issued that year, and that $629.36 was collected on this levy. In 1915, the levy was $939.91; $900 worth of warrants were issued, and $605.46 of the levy of this year collected, leaving a balance in the hands of the treasurer greatly insufficient to cash the warrants for $900, tendered to appellant in payment of the maintenance fee. Appellant then returned the warrants to the city and refused to deliver the water as provided for in the contract. Relators, who were property owners, thereupon made an application for a writ of mandamus to compel appellants to furnish them with the water supply. Upon the hearing of this application, the trial court issued the writ as prayed for, this appeal resulting. Several errors are assigned by appellants; but, as we are of the opinion that this case should be reversed on the merits, they will not all be considered.

The determinative features of this case are solely of law, viz., Was the tender of warrants to appellant, without sufficient funds collected for their payment, a sufficient compliance by the city with that part of the contract which provides that $900 maintenance fee shall be paid to appellant annually; and did the city agree, by virtue of paragraph 5 of the contract, to collect the money so that sufficient money would be on hand to pay the maintenance fee P

While it is true that the terms of the contract provide for dollars in payment of the maintenance fee, which in its ordinary interpretation means cash, it seems evident that the parties contemplated that this fee should be paid in warrants, especially in view of that provision of the contract which provides that this annual maintenance charge should be paid by means of rentals duly charged and collected as provided by law against the property in the improvement district. There is no authority under the statutes which will allow the city to disburse this money to appellant in cash.

Rem. & Bal. Code, § 7687 (P. C. 77 § 331), provides as follows:

[609]*609“All demands against such city shall be presented to and audited by the city council, in accordance with such regulations as they may by ordinance prescribe; and upon the allowance of any such demand, the mayor shall draw a warrant upon the treasurer for the same, which warrant shall be countersigned by the clerk, and shall specify for what purpose the same is drawn, and out of what fund it is to be paid.”

It is reasonable to presume that the parties contracted with reference to the law as it then existed, and when considered in connection with paragraph 5 of the contract, we think it is conclusive that the parties contemplated warrants as the mode of payment, since warrants, in so far as the need of appellant is concerned, are the equivalent of cash if there are sufficient funds collected or forthcoming and available, within a reasonably definite time, for their payment. Also the fact that appellant accepted the warrants for the 1914 maintenance fee and, so far as the record discloses, made no objection at that time, since they were cashed, and the further fact that no objection was made to the warrants in 1915 till they were registered unpaid for lack of funds, lends force to this contention.

We do not think that this rule of construction could be extended to such an extent as to hold that $900 means warrants of that amount without sufficient money on hand or forthcoming with reasonable certainty to cash them, and from the fact that some of the 1914 assessment was uncollected at the time of trial it would seem that the city was rather dilatory and negligent in attending to this duty. The unpaid maintenance fees may never be collected or even attempted to be collected by the city.

A warrant of a municipal corporation is a general order payable when the funds are found. Shelley v. St. Charles County Court, 21 Fed. 699. It is in effect, in this state, an assignment seriatim of that amount of the funds against which it is drawn. A warrant even lacks the stable quality of a definite time of payment peculiar to a bond or note, and [610]*610will only be paid when there is sufficient money in that particular fund on which it is drawn to cash it, and judging from the manner in which the city has collected the assessments already levied, this time would be very vague and indefinite.

Under the construction we place upon the contract, the city agreed to pay appellant, on April 1, of each year, $900 in warrants, and also agreed to collect this amount by means of assessments, and to do this in such a manner that the warrants would be equivalent to cash, as they would have been if there were sufficient money on hand or forthcoming to cash them at the time they were tendered to appellant. It is undisputed that there was not sufficient money in that particular fund upon which these warrants were drawn to cash them, and the city therefore breached its contract.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

County Board of Education v. Taxpayers and Citizens
163 So. 2d 629 (Supreme Court of Alabama, 1964)
Wm. P. Harper & Son v. Pacific Power & Light Co.
255 P. 949 (Washington Supreme Court, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
156 P. 834, 90 Wash. 606, 1916 Wash. LEXIS 981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-wehe-v-pasco-reclamation-co-wash-1916.