Union Ice Corp. v. Niles City

39 Ohio Law. Abs. 565, 29 Ohio Op. 494, 1942 Ohio Misc. LEXIS 261
CourtTrumbull County Court of Common Pleas
DecidedDecember 30, 1942
DocketNo. 40644
StatusPublished

This text of 39 Ohio Law. Abs. 565 (Union Ice Corp. v. Niles City) is published on Counsel Stack Legal Research, covering Trumbull County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Ice Corp. v. Niles City, 39 Ohio Law. Abs. 565, 29 Ohio Op. 494, 1942 Ohio Misc. LEXIS 261 (Ohio Super. Ct. 1942).

Opinion

[568]*568OPINION

By HOOPER, J.

The plaintiffs in their petition, among other averments which are not material to the issues in this case, allege that they are taxpayers of the defendant, the city of Niles, and rate payers of the electric light department of said city for electric current purchased from the city, and that they bring this action for themselves and for all other taxpayers and purchasers of electric current from the light department of said city.

Plaintiffs further allege that the defendant, the city of Niles, through the sale of electric current to the plaintiffs and other consumers created a surplus in the electric light department, and that the city, through its council, between the years 1926 and June 7, 1933, illegally transferred surplus moneys in said fund to the various other departments and agencies of said city.

The plaintiffs aver that said transfers were illegal and pray that said defendant city, the members of its council, and its proper agents, servants and officials, the defendants herein, be compelled to make an accounting of all the surplus funds and profits heretofore transferred out of said light department fund to the Mahoning Valley Sanitary District, or to- any other funds of said city not connected with said light department, or maintained for the purpose of the operation and maintenance of the same; that said defendants be required to restore to the electric light fund of said city such sums of money as may be found by the court to have been illegally transferred out of said fund, and for all other and further relief to which these plaintiffs may be entitled in law or in equity. ’

To this petition of the plaintiffs the defendants filed their answer in which the city of Niles admits that it is in the business of selling electric current, and the other defendants admit that they are the duly elected or appointed officials of the city of Niles. Further answering in said defense, the defendants deny each and every other allegation of the plaintiffs’ petition, and further allege, in said defense, that the city of Niles had not made unlawful transfers of funds from the electric light fund.

The defendants further answering in their defense styled “An Additional Defense”, allege that the plaintiffs are now estopped from demanding relief prayed for in the petition, because they are chargeable with laches; that said plaintiffs have acquiesced for years in the manner of the operation of said light department of the city of Niles, and further allege that said electric light department has been well and properly conducted and managed.

The defendants then pray that the plaintiffs’ petition be dismissed, at plaintiffs’ costs.

The plaintiffs, in-reply to the answer of the defendants, deny each and every allegation contained in the answer, except such as [569]*569are admissions of allegations contained in plaintiffs’ petition.

The pleadings and evidence present for the court’s consideration and determination this question:

“Shall the defendants be compelled to make an accounting of all surplus funds and profits transferred from the electric light department to the Mahoning Valley Sanitary District, or to any other funds of said city, between May 15, 1926 and June 7, 1933, and to restore to said electric light' department fund such sums of money as may be found by the court to have been illegally transferred out of said fund?”

The evidence in this case consisted of stipulations, exhibits and the testimony of witnesses.

Different statutes pertinent to the issues herein were in effect during the aforesaid period from May 15, 1926 to June 7, 1933, and this period may be divided as follows: From May 15, 1926 until August 10, 1927; from August 10, 1927 until July 26, 1929 and from July 26, 1929 until June 7, 1933.

The evidence in this case discloses that there were two transfers made between May 15, 1926 and August 10, 1927, from the electric light department to water works sinking fund and to the safety fund. Assuming that the funds were properly in and belonged to the electric light department fund, at the time these transfers were made, there weré in effect laws providing two different methods of transferring funds of a municipality from one fund to another and under certain conditions. The one method of transfer was provided for in §§2296 to 2301, inclusive of the General Code. These sections were originally enacted by House Bill 386, found in 95 Ohio Laws, 371, in 1902. Section 2296 and §2300 were amended in 1913, volume 103, page 552. At' the time of the two transfers, §2296 to §2301, inclusive, GC, read as follows:

“See. 2296. FUNDS MAY BE TRANSFERED BY WHOM. The county commissioners, township trustees, the board of education of a school district, or the council, or other board having the legislative power of a municipality, may transfer public funds except the proceeds or balances of special levies, loans or bond issues under 'their supervision, from one fund to another, or to a new fund created' under their respective supervision in the manner hereinafter provided, which shall be in addition to all other procedures now provided by law. .
“Sec. 2297. RESOLUTION AND PETITION. A resolution of such officers or board shall be duly passed by a majority of all the members thereof, declaring the necessity therefor, and such officers or board shall file' a petition in the court of common pleas of the ■county in which the funds are held. The petition shall set forth ■the name and amount of the fund, the fund or funds to which it is [570]*570desired to be transferred, a copy of such resolution with a full statement of the proceedings pertaining to its passage, and the reason or necessity for the transfer.
“Sec. 2298. NOTICE OF THE PETITION. The petitioner shall give notice of the filing, objects and prayer of the petition, and of the time when it will be for hearing. The notice shall be given by one publication in two newspapers of opposite politics, having a general circulation in the territory to be affected by such transfer of funds, preference being given to newspapers published within the territory. If there are no such newspapers, the notice shall be posted in ten most conspicuous places within the territory for the period of four weeks.
“Sec. 2299. HEARING AND OBJECTIONS. 'The petition may be heard at the time stated in the notice, or as soon thereafter as convenient for the court, but such cause shall be heard, upon request of the petitioners in preference to all other cases on the docket. Any person or persons, objecting to the prayer of such petition, shall file their objections in such cause on or before the time fixed in the notice for hearing, and they shall be entitled to be heard.
“Sec. 2300. TRANSFER UPON FINDING OF COURT. If upon the hearing the court finds that the notice has been given as herein required, that the petition states sufficient facts, that there are good reasons, or that a necessity exists for the transfer, and that no injury will result therefrom, it shall grant the prayer of the petition and order the petitioners to make such transfer. The court may make an order for the reimbursement, in whole or in part of the fund from which such transfer is made.
“Sec. 2301. FINDINGS TO BE ENTERED IN RECORDS.

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Bluebook (online)
39 Ohio Law. Abs. 565, 29 Ohio Op. 494, 1942 Ohio Misc. LEXIS 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-ice-corp-v-niles-city-ohctcompltrumbu-1942.