Stone v. Town of Crossville

212 S.W.2d 678, 187 Tenn. 19, 23 Beeler 19, 1948 Tenn. LEXIS 405
CourtTennessee Supreme Court
DecidedJune 29, 1948
StatusPublished
Cited by7 cases

This text of 212 S.W.2d 678 (Stone v. Town of Crossville) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone v. Town of Crossville, 212 S.W.2d 678, 187 Tenn. 19, 23 Beeler 19, 1948 Tenn. LEXIS 405 (Tenn. 1948).

Opinion

Me. Chief Justice Neiu

delivered the opinion of the Court.

The complainants, as taxpayers and resident citizens of Cumberland County, filed their original injunction hill in the chancery court attacking the validity of certain “Hospital Bonds” issued, or intended to be issued by Cumberland and the Town of Crossville, to the amount of $60,000; also a bond issue of $35,000 by the Town of Crossville, and another bond issue of $150,000 to be secured by revenue from the hospital, said bonds being referred to as ‘ ‘ Revenue Bonds. ’ ’

The bill prayed for an injunction to restrain the issuance and sale of these bonds. It was charged that Chapters 83 and 84 of the Private Acts of 1947 (validating the proceedings of the county court authorizing the issuance of $60,000 of Hospital Bonds,” and validating the proceedings of the Board of Commissioners of the Town of Crossville, authorizing the issuance of $35,000 “Hospital Bonds”) were unconstitutional.

The hill further charges that the aforesaid Private Acts are invalid for the following reasons, to wit:

(1) “The date of the bond issue is omitted from the validating Act, Chapter 83, of the 1947 Private Acts” (referring to the $60,000 bonds of the county).

(2) “Said validating Act suspends the general law contrary to the provisions of Article 11, Section 8, of the Constitution of Tennessee.”

(3) That the proposed hospital “is to be owned by the Town of Crossville and the County will not own any part or portion thereof, by reason whereof a tax levy for the payment of said bonds and interest thereon will not be [23]*23for a county purpose as required by Article 2, 'Section 29, of the Constitution of Tennessee,” etc.

The second validating Act, Chapter 84 of the Private Acts (referring to the $35,000 bonds of the Town of Crossville), is attached upon substantially the same grounds, except ground No. 3.

The alleged invalidity of $150,000 Hospital Revenue Bonds is grounded upon the general charge that Chapter 81 of the Private Acts of 1947, authorizing their issuance, is unconstitutional because it “unlawfully attempts to include by reference a part of the provisions of Chapter 10 of the Public Acts, Extra Session of 1935,” and that it undertakes to and does suspend the general law.

The defendants demurred to the bill upon the grounds that the said Acts referred to are in all respects valid and constitutional; that the omission from the Acts of the date of the bonds to be validated is not material; that the bill discloses that the issuance of the $60,000 of bonds by the County is for the benefit of all the citizens of the County and hence is a county purpose.

Referring to the alleged invalidity of Chapter 81 of the Private Acts of 1947, which authorizes the “Revenue Bonds” of $150,000, and which are dated July 1, 1947, the demurrants aver that “said law is complete in all respects. The fact that said law includes by reference a number of sections from Chapter 10 of the Acts of 1935, Extra Session, does not in any way invalidate same since the principle of legislation by reference has been clearly upheld by the Tennessee courts. ’ ’

The Chancellor sustained the demurrer and complainants prayed and were granted an appeal to this Court.

We deem it unnecessary to copy in this opinion the several assignments of error. Suffice it to say they pre[24]*24sent the same questions which were made by the demurrer and which the Chancellor decided adversely to the contention of the complainants. The case has not been free from difficulty, but upon full consideration of the authorities we think the decree of the Chancellor is correct.

The argument of complainants’ counsel is directed chiefly to the insistence that these Private Acts suspend the general law in violation of Article 11, Section 8, of the Constitution; “that county courts have only such powers as are vested in them by statute” (citing many of our cases); that Cumberland County, in violation of law, seeks to lend its credit to the Town of Crossville.

We are not unmindful of the fact that the county courts can exercise no power that is not conferred expressly or by clear implication, by the Legislature. This proposition is so well settled that cases need not be cited to support it.

The background to the movement to build a hospital to serve the people of Cumberland County is seen in Chapter 184 of the Public Acts of 1945 and carried in the Code as Sections 4406.127 to 4406.147. The title to the Act is in substance, “An Act to authorize counties of this state to construct, acquire, improve, operate and maintain public works, undertakings and projects; prescribing the mode of procedure for and regulating the issuance and sale of bonds and other obligations to finance such works,” etc.

Now by express provision of the Act, subsection (d) of Section 1, “hospitals” are included under the term “Public Works Project.” The Act expressly referred to the “Federal Aid Act” which provided for public works to reduce and relieve unemployment.

[25]*25Now in the instant case it appears that the Town of Crossville and the County Conrt of Cumberland County, acting by and through their governing authority, adopted resolutions for the issuance and sale of the :bonds referred to in this opinion, as authorized by the above mentioned “Public Worts” statute. They sought the aid, by contract, of the Reconstruction Finance Corporation in the issuance of the $150,000 revenue bonds. But this Federal Agency declined to go along with them unless the Town of Crossville was adjudged to be the owner, or have legal title to the hospital. The resolution of the County Court was changed to meet this requirement.

In 1947 the Legislature passed the validating Acts herein assailed by the complainants. It is complainants ’ insistence that the said validating Acts suspend the general law as found in Chapter 184 of the Public Acts of 1945, known as the “Public Works” statute.- Code Sections 4406.127 to 4406.147, supra.

Under Section 3 of this statute, subsection (b), and under the heading “Powers of counties,” the following-provision confers authority upon counties and municipalities to construct “Public Works”: “To operate and maintain any public works project for its own purposes or for the benefit and use of its inhabitants. ’ ’ Subsection (c) provides: “To accept from any federal agency grants for or in aid of the construction of any public works project.” Subsection (d) provides for the issuance of bonds “to finance such construction.” Subsection (e), “To assess, levy and collect unlimited ad valorem taxes on all property subject to taxation to pay the bonds, and the interest thereon, issued to finance any public works project.”

[26]*26We must keep in mind the express provision that “Public Works” includes “hospitals.” We find from Section 6 of said Act that “No vote of the qualified electors upon a proposition for the issuance of bonds by any county under this act shall be necessary if the initial resolution is adopted by at least three-fourths, (%) of all the members of the governing body of such county.”

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Bluebook (online)
212 S.W.2d 678, 187 Tenn. 19, 23 Beeler 19, 1948 Tenn. LEXIS 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-town-of-crossville-tenn-1948.