Association Sanatorium v. James

• Decision Date: 21 June 1911
• Citation: 144 Ky. 314,138 S.W. 377
• Parties: ASSOCIATION SANATORIUM v. JAMES, Auditor of Public Accounts.
• Court: Kentucky Court of Appeals

138 S.W. 377

144 Ky. 314

ASSOCIATION SANATORIUM v. JAMES, Auditor of Public Accounts.

Court of Appeals of Kentucky.

June 21, 1911

Appeal from Circuit Court, Franklin County.

Action by the Association Sanatorium against F. P. James, Auditor of Public Accounts. From a judgment for defendant, plaintiff appeals. Affirmed.

Bernard Flexner and John Marshall, for appellant.

James Breathitt, Atty. Gen., and Theo. B. Blakey, Asst. Atty. Gen for appellee.

HOBSON C.J.

Section 4711a, Ky. St., among other things, provides:

"(1) That there is hereby appropriated out of any money in the treasury not otherwise appropriated, the sum of twenty-five thousand ($25,000) dollars, for the benefit of the Association Sanatorium of Jefferson county, Kentucky, and any similar sanatorium or sanatoria establishment in this commonwealth for the care and treatment of consumptives to be paid to such sanatoria as hereinafter provided.

"(2) The Auditor of Public Accounts be, and he is hereby authorized and directed to draw his warrants upon the treasury in favor of the treasurer of the Association Sanatorium on June 1, 1908, for the sum of fifty-six hundred ($5,600.00) dollars, and annually thereafter said Auditor of Public Accounts be, and he is hereby, authorized and directed to draw his warrants upon the treasury in favor of the treasurer of the Association Sanatorium for the sum of fifty-six hundred ($5,600.00) dollars, unless said Association Sanatorium is entitled to more than said sum as hereinafter provided; the sum of fifty-six hundred ($5,600.00) dollars being twenty (20) per cent. of the total sum expended by the said Association Sanatorium in equipping and establishing its sanatorium.

"(3) Any other sanatorium incorporated, established and equipped within this commonwealth by private contribution for the care and treatment of consumptives, the articles of incorporation of which provide that it shall not be operated for profit, shall be entitled to receive out of the fund herein appropriated, annually, a sum equal to twenty (20) per cent. of the amount actually expended by said sanatorium in establishing and equipping such sanatorium, and the Auditor of Public Accounts is authorized and directed to draw his warrants upon the treasury in favor of the treasurer of any such sanatorium for such an amount, after such sanatorium has complied with the provisions of this act.

"(4) No sanatorium embraced within the provisions of this act shall be entitled to receive in any one year an amount of money out of the appropriation herein made, in excess of three hundred and fifty ($350) dollars per year for each bed maintained for patients by such sanatorium, and no sanatorium shall be entitled to receive any part of the appropriation herein made unless such sanatorium is actually established and is receiving and caring for persons suffering from consumption and has been in actual operation for a period of six months."

"(6) Any sanatorium embraced with the provisions of this act, which, in an effort to care for more persons suffering from consumption, shall enlarge the sanatorium maintained by it, shall be entitled to the benefits of this act with reference to such improvements, it being the intention of the General Assembly of the commonwealth to grant financial aid to any sanatorium within the commonwealth equipped and maintained for the care of consumptives as herein provided, to the extent of twenty (20) per cent. annually of amount actually paid and expended in equipping and maintaining such sanatorium: Provided always that such aid rendered by the commonwealth shall not in the aggregate amount to more than three hundred and fifty ($350) dollars per year per bed, maintained for patients in such sanatorium."

The fifth section provides that no part of the appropriation shall be paid until a certain bond is executed and certain sworn statements are made by the officers of the institution, and these have been approved by the state inspector. The seventh section provides for reports by the institution, and the eighth provides for the examination of their books and records by the state inspector.

The Association Sanatorium brought this suit against the Auditor setting up facts showing that it has complied with the act, and is entitled to aid from the state as therein provided; that it had expended in establishing and equipping its plant $28,000 and maintained 16 beds for patients; that the Auditor had paid it $5,600, as of date June 1, 1908; also $8,419.38, as of June 1, 1909; that prior to April 1, 1909, it had only 16 beds but that on April 1, 1909, it completed a new shack containing 10 additional beds, the shack having been in course of construction for some months prior to that date; that on April 21, 1909, it became available for patients who, prior to that time, had been on the waiting list, and that within a very short time thereafter, and prior to June 1, 1909, the 10 additional beds were actually occupied by patients suffering from tuberculosis. ...