41 Ohio St. 504 (Ohio 1885), Board of Education v. Sinton

Citation:41 Ohio St. 504
Opinion Judge:MARTIN, J.
Attorney:King, Thompson and Maxwell, for plaintiff in error. Lloyd & Taft, for defendant in error.
Court:Supreme Court of Ohio

Page 504

41 Ohio St. 504 (Ohio 1885)




Supreme Court of Ohio

January, 1885

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ERROR to the District Court of Hamilton County.

Sinton was plaintiff below, and his action was founded on thirty coupon bonds, each for $ 100, alleged to have been given by the defendant, a board of education of the separate school district of the village of Westwood. The defenses were a general denial and payment. Sinton recovered judgment. A motion for new trial having been overruled a bill of exceptions covering the testimony was allowed. In the district court the judgment was affirmed. The object of this proceeding is to procure a reversal of the affirmance.

It appears that the board was organized under the act for the formation of separate school districts from sub-districts of a township, passed April 9, 1867, (64 Ohio Laws, 117). The board consists of three members who, when the transactions under review occurred, were William E. Davis, John D. Minor and Thomas Morgan. Davis was treasurer of the board from April, 1874, to his death in April, 1877. He was a man of repute and prominence, and held other public trusts. The board was authorized by a special act of the legislature, passed May 7, 1869 (66 Ohio Laws, 402), to purchase a site and build a school house at a cost not exceeding $ 20,000; and for the purpose of providing funds therefor to issue and sell at par value its bonds in sums of not less than $ 50, nor greater than $ 500, with interest at 8 per cent. per annum, payable semi-annually, for an amount not exceeding in the aggregate the sum of $ 20,000, and payable at any time, not exceeding ten years, from the time of issue. It was also authorized to levy an annual tax for the payment of the same, and to sell the old school house and lot, and apply the proceeds toward the erection of the new building.

On September 1, 1869, the board accordingly issued two hundred bonds, each for the sum of $ 100, payable September 1, 1879. The bonds in suit are of this number, and were sold and delivered by the board, and were at various times thereafter, and before June, 1875, redeemed and lifted by the treasurer for the board, and with its funds; and on report made by him he was ordered by the board to cancel them by punching or defacing the signatures. He did not cancel them; but on November 4, 1876, having procured a favorable introduction to Sinton, he delivered them as collateral security for a loan then made to him by Sinton. Sinton had no previous acquaintance with Davis, and supposed he was the owner of the bonds, and did not know that he was or had been treasurer of the board. He made no inquiry as to the custody of, or title to the bonds.

The bonds were separately numbered and of this form:



100 Dollars.] EIGHT PER CENT. LOAN [Certificate No.


By virtue of an Act of the General Assembly of the State of Ohio, passed the 7th day of May, 1869, the Board of Education of Separate School District of the Village of Westwood, in the County of Hamilton, and State of Ohio, do hereby acknowledge that the Separate School District of the Village of Westwood, owes and promises to pay to --- --- or bearer, the sum of One Hundred Dollars, on the first day of September, eighteen hundred and seventy-nine, with interest thereon at the rate of eight per centum per annum, from the date hereof, the said interest to be paid semi-annually, on the first day of March, and the first day of September, on presenting the proper coupon for the same at the Bank of the Ohio Valley, Cincinnati, O.

In witness whereof, we, the Directors of the Separate School District of the Incorporated Village of Westwood, have hereunto set our hands, and affixed the seal of the said Incorporated Village, this first day of September, in the year 1869.

WM. E. DAVIS, ) Board
THOMAS MORGAN, ) Education.

Judgment reversed. SYLLABUS A board of education being authorized by a special act (66 Ohio L., 402) to issue its bonds to an amount not to exceed the sum of $ 20,000, issued the same to the full extent of its authority, payable to --- --- or bearer; and thereafter took up and paid certain of such bonds and left them with its treasurer, who was a member of such board, with instructions to cancel them, which he failed to do, but negotiated them, before maturity to S., as collateral security for a loan made to him by S., who made no inquiry in regard to...

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