Butters v. City of Oakland, 16

• Decision Date: 12 November 1923
• Docket Number: No. 16,16
• Citation: 263 U.S. 162,44 S.Ct. 62,68 L.Ed. 228
• Parties: BUTTERS et al. v. CITY OF OAKLAND
• Court: U.S. Supreme Court

263 U.S. 162

44 S.Ct. 62

68 L.Ed. 228

BUTTERS et al.

v CITY OF OAKLAND

No. 16.

Submitted Oct. 3, 1923.

Decided Nov. 12, 1923.

Messrs. C. Irving Wright and J. E. Manders, both of San Francisco, Cal., for plaintiffs in error.

Mr. James A. Johnson, of Oakland, Cal., for defendants in error.

Mr. Justice SUTHERLAND delivered the opinion of the Court.

Plaintiffs in error brought suit to restrain the defendants from making or recording an assessment of improvement taxes against plaintiffs' properties, made under the provisions of the Improvement Act of 1911. California Statutes 1911, pp. 730-769. The improvement consists of certain street grading in the city of Oakland, together with various structures, such as culverts, etc., in connection therewith.

The authority to order such improvements is vested by the statute in the city council, which before making an order, must pass a resolution of intention to do so, setting forth specified details. In a case such as is here presented, the council may delimit the district to be benefited and make the expense chargeable upon it. Public notice of the contemplated improvement is to be given, and, within stated times thereafter, the owner of any assessable property may protest in writing against either the proposed work or the extent of the district to be assessed, or both. Such protest must be heard and passed upon by the council and 'its decision shall be final and conclusive.' If the protest be denied, the council may order the proposed improvement. Provision is made for inviting bids and awarding and making contracts therefor and for reviewing the proceedings at the instance of any interested person. Where the cost of the improvement is to be assessed against a district, diagrams of the property benefited must be made, showing each separate lot, piece or parcel of land, its area, relative location, etc. Thereupon the superintendent of streets must estimate the benefit to be received by each of such parcels of land 'In proportion to the estimated benefits to be received by each,' and thereafter an assessment to cover the same is made. Any person interested may appeal to the city council in respect of these and prior proceedings, including the question of the correctness or legality of the assessment. The decision of the city council thereon is made final and conclusive as to all persons entitled to appeal.

The trial court found the issues of fact and of law against plaintiffs and entered judgment accordingly, which was affirmed by the Court of Appeal for the First Appellate District. 53 Cal. App. 294, 200 Pac. 354. A petition to have the cause heard in the state Supreme Court was denied, and it comes here by writ of error to the District Court of Appeal. The federal question raised in the court below and presented here is that the state statute and the assessment against plaintiffs' properties offend against the federal Constitution in that the one arbitrarily authorizes and the other arbitrarily imposes a tax upon plaintiff's properties for local improvement in excess of the benefits received and without providing for resulting damages, and thereby they are deprived of their property without due process of law, in violation of the Fourteenth Amendment. Several grounds are urged in support of this contention, which we consider in their order.

1. Plaintiffs in error content that the assessment was not in proportion to the benefits because certain property, also benefited by the improvement, was omitted from the district. Without reviewing the circumstances said to establish this contention, it is enough to say that the municipal authorities were empowered to establish the district benefited and to assess the tax in proportion to the benefits. Ample provision is made for a hearing and a hearing was accorded. There is nothing to justify the conclusion that the authorities acted arbitrarily or fraudulently. The assessment was reviewed upon appeal by the city council, and that body, after a hearing, altered it in some particulars, and caused a new warrant of assessment to be issued. Its action, under the statute, was final and conclusive and is not open to attack in this proceeding. Fallbrook Irrigation District v. Bradley, 164 U. S. 112, 167-170, 175, 17 Sup. Ct....