Blackmore v. Duplin County

• Decision Date: 02 July 1931
• Docket Number: No. 214.,214.
• Court: North Carolina Supreme Court
• Parties: BLACKMORE et al. v. DUPLIN COUNTY et al.

(201 N.C. 243)

159 S.E. 354

BLACKMORE et al.

v.DUPLIN COUNTY et al.

No. 214.

Supreme Court of North Carolina.

July 2, 1931.

Appeal from Superior Court, Duplin County; Small, Judge.

Controversy without action between W. R. Blackmore and others and Duplin County and others. Judgment for defendants, and plaintiffs appeal.

Error.

Controversy without action submitted on an agreed statement of facts.

The plaintiff, a resident taxpayer of Duplin county, seeks to enjoin the defendants from issuing bonds to fund the present outstanding indebtedness of the county as "for a special purpose, " which the defendants are attempting to do under the County Finance Act, chapter 81, Public Laws 1927, as amend ed by the Local Government Act, charter 60, Public Laws 1931.

Prior to March 3, 1931, Duplin county had incurred an indebtedness for necessary expenses, including upkeep of roads and bridges, and the payment of maturing bonds and interest, and money borrowed to meet said expenses, itemized in the record as follows:

                ---------------------------------------------------------------------------
                |Tax Anticipation Note (dated 5 Dec, 1930, due 5 June, 1931)   |$40,000.00|
                |--------------------------------------------------------------|----------|
                |Tax Anticipation Noted (dated 18 Feb. 1931, due 18 July, 1931)|50, 000.00|
                |--------------------------------------------------------------|----------|
                |Part balance due on road and bridges-28 April, 1931           |8, 000.00 |
                |--------------------------------------------------------------|----------|
                |                                                              |$98,000.00|
                ---------------------------------------------------------------------------
                

A resolution looking to the funding of this indebtedness was introduced May 11, 1931, before the governing body of the county as required by section 9 of the County Finance Act (as amended by Pub. Laws 1931, c. 60, § 55) and duly published in the Duplin Journal on May 14 and 28 and June 4, agreeably to the provisions of section 16 of said act.

No protest against the issuance of the bonds having been made by any citizen or taxpayer, on May 25, the day fixed therefor under authority of section 17 of the County Finance Act, the resolution was finally adopted by the board of commissioners.

There was nothing in the resolution or in the publication thereof to indicate that the funding of the indebtedness was to be "for a special purpose" or that a tax in excess of the 15 cents on the $100 valuation would be levied to pay the same.

On June 8, at an adjourned meeting of the board of commissioners of Duplin county, an amendatory resolution was adopted setting forth that the necessary expenses of the county chargeable to the general county fund for the fiscal year beginning July 1, 1931, will require the levying of a tax to the full constitutional limit of 15 cents on the $100 valuation of property, making it impossible to care for the above indebtedness out of said tax levy and carry on the necessary operations of the county, and, by reason of the unusual depression now prevailing, it has been found impossible to collect sufficient taxes to meet said obligations; and the "Board of Commissioners of Duplin County finds as a fact that an emergency exists by reason of the present extraordinary financial condition and that the issuance of the said funding bonds 'for a special purpose' is necessary, in fact, the only means of meeting said indebtedness, and that said bonds are issued with the special approval of the General Assembly."

From a judgment denying the injunctive relief sought and adjudging "that the funding bonds in the sum of Ninety Eight Thousand ($98,000.00) Dollars, authorized to be issuedby the Board of Commissioners of Duplin County, and to be advertised and sold by the Local Government Commission of North Carolina, by Chas. M. Johnson, Director of Local Government and...