Valley Bank & Trust Co. v. Proctor

53 P.2d 857, 47 Ariz. 77, 1936 Ariz. LEXIS 195
CourtArizona Supreme Court
DecidedJanuary 20, 1936
DocketCivil No. 3559.
StatusPublished
Cited by1 cases

This text of 53 P.2d 857 (Valley Bank & Trust Co. v. Proctor) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valley Bank & Trust Co. v. Proctor, 53 P.2d 857, 47 Ariz. 77, 1936 Ariz. LEXIS 195 (Ark. 1936).

Opinion

*78 BOSS, J.

In the opinion in Proctor v. Hunt et al., 43 Ariz. 198, 29 Pac. (2d) 1058, it ivas decided that the complaint did not state a canse of action against the state auditor or state treasurer, hut did state a cause of action against Governor Hunt, and as to him the case was remanded for trial on its merits. Thereafter a trial before the court with a jury resulted in a verdict and judgment for the plaintiff, and this appeal is from such judgment. Subsequent to the trial and the appeal Governor Hunt died, and the Valley Bank & Trust Company, the executor of his last will and testament, was substituted as party appellant.

The action was brought under the provisions of sections 105, 106, and 107, Bevised Code of 1928. The gravamen of the complaint is that the Governor approved of many claims and demands on the state for g’oods, wares, and merchandise furnished him for his private and personal use and not for a governmental or public use.

Section 105, supra, provides generally that any public officer who approves of any claim- or demand against the state not authorized by law shall be liable for any money thereby procured and 20 per cent, in addition thereto and legal interest upon such payment from date thereof.

Section 106 makes it the duty of the Attorney General to bring an action to enjoin illegal payments, or if already paid out to recover them with 20 per cent, penalty, interest, and costs, all to be paid into the state treasury.

Section 107 authorizes any taxpayer to bring the action in his own name if the Attorney General shall fail for sixty days after request in writing to do so “with the same effect as if brought by the attorney *79 general.” If in the taxpayer’s action he prevails, the court may allow him costs and a reasonable attorney’s fee, not to exceed 40 per cent, of the amount recovered or saved to the state.

In this case the Attorney General refused, after request in writing so to do, to bring the action, and it was then instituted by B. D. Proctor, a taxpayer.

The first assignment of error is the order of the court overruling demurrer to the complaint. After the case was remanded and before trial plaintiff amended the complaint. The nature and extent of the amendment we find it difficult to determine. Defendant says the complaint as amended contained “certain items” that were not in the original or first amended complaint. Plaintiff says the items questioned were included in the original and the only variance “was mistakes in addition.” The ground of the demurrer was that the complaint on its face showed that those “certain items” accrued more than one year before the amendment, and that therefore, as to such items, the one-year statute of limitations had run. Subdivision 3, § 2058, Id.

This action, while brought in the name of a private person, is really in the interests of the state. It involves the right of the state to recover money unlawfully appropriated or expended by one of its officers. Section 2056, Id., reads as follows:

“The rights of this state shall not be barred by the limitations of actions prescribed in this chapter.”

The money sought to be recovered was the state’s money, and, if recovered, must be paid into the state treasury. The trial court was of the view that the limitation did not run because it was, in effect, an action for the state, and we agree that that conclusion was correct. The demurrer was properly overruled.

*80 The action was for over $2,000 and the recovery is only $329.89 plus penalties, costs, and attorney’s fees.

The other assignments go to the court’s rulings on questions of law and to the weight and sufficiency of the evidence to support the judgment. In our former opinion, in passing upon the sufficiency of the complaint, we stated the law to be:

“It is, of course, axiomatic that money raised by public taxation is to be collected for public purposes only, and can only legally be spent for such purposes and not for the private or personal benefit of any individual. Sections 1 and 7, article 9, Constitution of Arizona. It is equally axiomatic that public money may not be spent, even for public purposes, unless somebody, authorized by the Constitution and the law to do so, has made an appropriation therefor. Section 5, article 9, Constitution of Arizona. Under our system of government, these appropriations may only be made by the direct authorization of the people, through the Constitution or an initiated act, or by an act of the Legislature, which has plenary power over the expenditures of public money, except as restricted by the terms of the Constitution. This legislative power may be exercised directly, as in the various appropriation bills made by the Legislature from time to time, or indirectly, through the establishment of subordinate municipal corporations, such as counties, cities, school districts, and the like, and the authorizing of them to spend certain portions of the public money, but in the end all appropriations are based upon the affirmative act, either of the people or of the Legislature. ...
“If it be true that he [governor] audited and approved claims against the state for money which was expended for his personal and private use, and not for a public use, ... it certainly was sufficient ■ to sustain an action under section 105, supra.”

The Governor having denied expending any of the state’s money for his personal and private use, evidence pro and con on that issue was submitted to the *81 court and jury, and these triers of the facts determined that defendant had spent $329.89 of the state’s money for his own personal and private use. In the course of the trial, the evidence as to many of the items being undisputed, the court, on motion of plaintiff in some instances, directed a verdict for plaintiff, and in some instances, on motion of defendant, directed a verdict for defendant, and, where the evidence was in conflict as to any item, left it with the jury under general instructions.

Ordinarily, when no complaint is made of the instructions, and there is none here, we content ourselves with the verdict and refuse to go into the .case any further. The rule has always been for this court to accept, when the evidence is conflicting, the verdict or conclusion of the trier of the facts, whether a jury or court, and we may make no exception to that rule. We will review the evidence, therefore, only for the purpose of determining whether upon the uncontroverted facts the Governor expended the state’s money for a public purpose or for his own personal and private use.

One of the items he caused to be charged against and paid by the state was for a group photograph of five persons, including himself. He approved a claim by the photographer for five copies of the photograph, at $1.50 each, kept one, which he framed and hung in his office at his home, and gave one copy to each of the others of the group. This item was paid out of the Governor’s contingent fund.

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Cite This Page — Counsel Stack

Bluebook (online)
53 P.2d 857, 47 Ariz. 77, 1936 Ariz. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valley-bank-trust-co-v-proctor-ariz-1936.