Warm v. Cincinnati

25 Ohio Law. Abs. 338
CourtCourt of Common Pleas of Ohio, Hamilton County
DecidedJune 22, 1937
StatusPublished

This text of 25 Ohio Law. Abs. 338 (Warm v. Cincinnati) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Hamilton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warm v. Cincinnati, 25 Ohio Law. Abs. 338 (Ohio Super. Ct. 1937).

Opinion

OPINION

By GORMAN, J.

This is an action by a taxpayer to enjoin the city of Cincinnati from issuing bonds for the purpose of carrying out its part of an agreement made on October 8, 1936 with the New York Central Railroad and John A. Jáfeter, director of highways of the state of Ohio.

The subject matter of the contract is lor the elimination of certain grade crossings, which contract was entered into by the city of Cincinnati, Ohio, the New' York Central Railroad and the director of state highways, pursuant to the provisions of §1228-1, GC, the Federal Emergency Relief Appropriation Act of 1935 and the rules and regulations adopted and approved by the secretary of agriculture of the United States, the Works Progress Administrator of the United States and the President of the United States, pursuant to the aforesaid Federal Emergency Relief Appropriation Act of 1935.

It will be noticed that neither John A. Jaster, the state director oi highways, nor any of the Federal officials are made parties defendant.

On June 17, 1931, the city of Cincinnati and The New York Central Railroad Company entered into an agreement for the elimination of certain grade crossings of that railroad at 67th, 69th, 70th, 71st, 72nd, 73rd, and 74th streets, under the provisions of §8868, GC, whereby the city was to pay thirty-five per cent of the cost and the railroad company sixty-five per cent. No effective action was ever taken under this agreement, although the railroad did acquire ten parcels of land in furtherance of the plan proposed. Finally, on September 2, 1936, the council of- the city of Cincinnati adopted an ordinance authorizing the city manager to release the railroad company from the obligation of this contract, in consideration of the payment of $100.000 to the city, and conveying to the city the ten certain parcels oí real estate it had acquired lor the purpose of carrying out the agreement of June 17, 1931.

This release was executed on October 8, 1936. In the meantime, on April 15. 1936, council of the city of Cincinnati operate with the director oi state highways for the separation of the grades of the C. C. C & St. L. Railway Company, of which the'New York Central Railroad is lessee, at 69th and 71st streets.

On August 5, 1936 the council passed an ordinance authorizing the city manager to execute a tri-party agreement with the state of Ohio and the New York Central Railroad on behalf of the city, providing for the elimination of these grade crossings.

[340]*340This agreement was executed on October 8, 1936. It provides in part that the improvement is contemplated, being made under the provisions of the Federal Emergency Relief Act of 1935 (H. J. Resolution 117 of the'74th Congress) and §1228-1, GC. It then describes in detail how the grade crossing shall be eliminated. §3 provides that the greater portion of the work shall be let on contract by the state after competitive bidding. The state shall have general charge of and perform the engineering work on the project, but the city and railroad shall provide such special engineering services as may be required. §7 of the contract provides:

“It is understood that the project herein contemplated is to be financed from funds provided by the Federal Government and the city, and expended under Federal regulations; that all plans, specifications, estimates of costs, awards of contract, acceptance of work and procedure in general are subject at all times to all Federal laws, rules and regulations, orders and approvals applying to it as a Federal project.”

The new track metal and ties entering into the. permanent tracks shall be furnished by the railroad company without cost to the project. The state agrees that it will pay $635,000 for the construction, but should it exceed this amount, “the excess cost shall be borne by the city.” The preliminary estimate of the total cost of construction is approximately $650,000.

It is estimated that the cost of property damage is $325,000 and shall be borne by the city.

In the agreement of September 3, 1.936 the railroad company agreed to pay the city the sum of $100,000 to be used by the city as part payment for the land to be acquired. It also agreed to convey ten parcels it had acquired to the city, and that the payment and conveyance will operate as a full discharge of the contribution to be made by the company to the project.'

There is no claim that there are any procedural defects in the steps taken by the state, city, railroad company or Federal Government. All of the provisions of the satutes have been complied with, but the validity of the statutes, ordinances and agreements are challenged by this proceeding.

Sec 1228-1, GC authorizes the director of highways to accept any allotment of funds made by the Federal Government under the Federal Emergency Relief Appropriation Act of 1935 in accordance with the rules and regulations issued thereunder for the elimination of grade crossings. The procedure to be employed and the plan followed is that which existed for the elimination of grades’ when the city and state co-operated together to do such work (§1229, GC).

It is specifically provided that “the division of expense shall be limited to only such part of the expense of such improvement as remains after the application thereto” of the funds accepted from the United States.

Provision is made for a municipality to enact legislation to carry 'out the improvement and to issue bonds for its portion of the cost of the improvement.

The plaintiff claims that the contract in question provides for an unlawful delegation of legislative 'power of the state of Ohio and the city of Cincinnati to the President and the Federal administrative officials, contrary to Article 2, §1 of the Ohio Constitution; that §§1228-1 and 17-4, GC unlawfully delegate legislative power to the President of the United States; that the Federal Emergency Relief Appropriation Act of 1935 provides for an unlawful delegation of legislative functions by Congress to the President and the Federal Administrators; that the Federal Act likewise violates the provisions of the Tenth Amendment of the Constitution, permitting a usurpation by the National Government of the reserved powers of the state; and finally that the contract provides for an unlawful lending or advancement of credit by the State of Ohio to the city of Cincinnati and the New York Central Railroad Companjr.

The .plaintiff concedes that he could not enjoin the appropriation by the National Government in the Federal courts, as he would not have sufficient interest as an ordinary taxpayer so to do. See — Massachusetts v Mellon, 262 U. S. 447; City of Allegan v Consumers Power Co., 71 Fed. (2nd), 477; Arkansas-Missouri Power Co. v Kennett, 78 Fed. (2nd) 911, 914.

Since neither state nor federal officials are parties to this action, the question presented is whether the action of the city of Cincinnati in issuing bonds to pay its share of the cost, and expending money under the contract executed, will amount to a misapplication of funds of the city, an abuse of corporate powers, or the performance of a contract made in contravention of the laws and ordinances. (See §§4311, 4313, GC).

[341]*341A taxpayer may bring an action to enjoin the issuance of bonds ii the contract for which the funds are to be raised provides for an expenditure which is illegal.

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Cite This Page — Counsel Stack

Bluebook (online)
25 Ohio Law. Abs. 338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warm-v-cincinnati-ohctcomplhamilt-1937.