Attorney Gen. ex rel. Eaves v. State Bridge Comm'n
| Decision Date | 09 December 1936 |
| Docket Number | No. 118.,118. |
| Parties | ATTORNEY GENERAL ex rel. EAVES v. STATE BRIDGE COMMISSION et al. |
| Court | Michigan Supreme Court |
On rehearing.
Original opinion in 269 N.W. 388, 277 Mich. 373, reaffirmed without change.
Appeal from Circuit Court, St. Clair County, in Chancery; Fred W. George, Judge.
Argued before the Entire Bench, except POTTER and TOY, JJ.
Avery & Covington, of Port Huron, for appellant.
George C. Watson, of Port Huron, for appellees.
The opinion heretofore rendered is reaffirmed without change, the following being added thereto for the purpose of clarification:
The revenue bonds in question impose only a special or limited duty upon the state relating solely to the collection and application of revenues. The act provides that the revenue bonds must contain a statement on their face that ‘the state shall not be obligated to pay the same or the interest thereon except from the revenues of the works.’ Pub.Acts 1935, No. 147, § 8. The source of revenue for the payment of the bonds is only the income; there is no lien on the bridge or ferries. We reiterate the bonds do not directly, or indirectly, or contingently obligate the state to levy or to collect any form of taxation whatever therefor or to make any appropriation for their payment. State v. City of Miami (1933) 113 Fla. 280, 152 So. 6. The bondholders are bound by the act and cannot look to the state for payment. Bates v. State Bridge Commission (1930) 109 W.Va. 186, 153 S.E. 305. And if default should be made in the payment of the bonds, the good faith of the state will not be affected. Klein v. City of Louisville (1928) 224 Ky. 624, 6 S.W.(2d) 1104.
I stand by the original opinion and, therefore, do not join in the expatiation.
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