Hopkins v. Baldwin

• Decision Date: 10 April 1936
• Citation: 167 So. 677,123 Fla. 649
• Parties: HOPKINS v. BALDWIN et al.
• Court: Florida Supreme Court

167 So. 677

123 Fla. 649

HOPKINS v. BALDWIN et al.

Florida Supreme Court

April 10, 1936

Rehearing Denied May 6, 1936.

En Banc.

Suit by William D. Hopkins, a taxpayer in the State of Florida against George H. Baldwin and others, as members of and constituting the Board of Control of the State of Florida. From an adverse order, the plaintiff appeals.

Affirmed. Appeal from Circuit Court, Leon County; J. B Johnson, Judge.

COUNSEL

William D. Hopkins, of Tallahassee, for appellant.

Cary D Landis, Atty. Gen., H. E. Carter, Asst. Atty. Gen., and Waller & Pepper and Julius Parker, all of Tallahassee, for appellees.

OPINION

DAVIS Justice.

The complaint in this case, brought by William D. Hopkins, a taxpayer, sought injunction to restrain the appellees, as members of the state board of control, from carrying to completion, in pursuance to chapter 16981, Acts 1935 (Senate Bill No. 1044), General Laws of Florida, a plan by which the state board of control proposes to borrow approximately $900,000 from the Federal Emergency Administration Public Works, giving as sole security therefor certain revenue certificates in the nature of limited debentures on the income and revenue to be derived by the obligor state board of control for 'fees, rentals and other charges' from students, faculty members, and others using, or being served by, or having the right to use, or having the right to be served by, certain dormitories and a dining hall proposed to be constructed with the money borrowed (supplemented by a 45 per cent. grant from the United States Government in aid of same) at the University of Florida at Gainesville, Fla., at the Florida State College for Women at Tallahassee, Fla., and at the Florida Agricultural and Mechanical College for Negroes at Tallahassee, Fla.

The sole security for the repayment of the borrowed money is a first, exclusive and closed lien on the income and revenue (but not on any of the real property of the involved institution) derived solely from the fees, rentals, and other fees and charges from students, faculty members, and others using or being served by, or having the right to use or be served by, the projects to be constructed by the expenditure of money borrowed and granted to the state board of control by the federal government pursuant to the authorizing Acts of Congress applicable in the premises.

Construed according to the legal meaning and effect of the language used, it is specially provided on the face of each proposed revenue certificate that the same is an obligation of the state board of control only, and that is not an obligation, general, special, or otherwise, of the state of Florida, nor a bond or debt of the state of Florida, nor enforceable, against the tax revenues of the state of Florida, nor enforceable against any of the public funds of the state board of control, nor enforceable at all against any financial resource coming into the hands or management of the state board of control other than the specific income and revenue pledged to the holders of each certificate as anticipated to be derived from fees, rentals, and other charges proposed to be made for the use and enjoyment by students, faculty members, and others of the new buildings and facilities proposed to be brought into being as a result of the embarkation by the state board of control upon the projects described in the resolution adopted by the state board of control under date of March 15, 1936.

The resolution adopted by the state board of control, as aforesaid, reads in part as follows:

'A resolution authorizing the construction of three dormitories at the University of Florida, a dormitory and a dining hall at the Florida State College for Women and two dormitories at the Florida A. and M. College and, to aid in financing the cost of such construction, for the issuance of revenue certificates in the aggregate principal amount of $1,167,000 payable from the income and revenue derived from said dormitories and dining hall.

'Be it resolved by the Board of Control, a public corporation of the State of Florida, with the approval of the State Board of Education of Florida:

'Section 1. The Board of Control (herein called the 'Board') has ascertained and determined and does hereby find and declare: (a) The construction of three dormitories at the University of Florida at Gainesville, Florida (herein called 'Project A'), the construction of a dormitory and dining hall at the Florida State College for Women at Tallahassee, Florida (herein called 'Project B'), and the construction of two dormitories at the Florida Agricultural and Mechanical College for Negroes at Tallahassee, Florida (herein called 'Project C'), are required for the proper conduct, management, and operation of said institutions and there is an imperative and immediate need therefor; (b) It is advisable and necessary, in order to provide funds for the construction of said Projects A, B, and C, in addition to the grant expected to be made by the United States of America and the funds of the Board to be applied for the purpose of paying the costs of such construction, to borrow money and to issue therefor the special obligations of the Board of Control, to be payable and secured as hereinafter provided; (c) The United States of America, pursuant to the Emergency Relief Appropriation Act of 1935, is expected to make an offer to aid in financing the construction of Projects A, B, and C by making a grant to the Board in an amount not to exceed 45 per centum (45%) of the costs of said Projects upon completion, and to purchase at par and accrued interest $1,167,000 aggregate principal amount of revenue certificates to be issued by the Board with the approval of the State Board of Education.

'Section 2. For the purpose of financing the construction of Project A there shall be issued revenue certificates of the Board, with the approval of the State Board of Education, in the aggregate principal amount of $522,000, under the authority of the Constitution and Statutes of the State of Florida, particularly chapter 16981, Laws of Florida, Acts of 1935. * * *

'Section 3. Said revenue certificates and the coupons thereto attached shall be in substantially the following form:

'No. -----

$1000

'United States of America, State of Florida, Board of Control

'Revenue Certificate Series A.

'The Board of Control, a public corporation of the State of Florida, with the approval of the State Board of Education of Florida, for value received hereby acknowledges itself indebted and hereby promises to pay to the bearer, or if this certificate be registered, to the registered owner hereof solely from the income and revenue pledged to the payment hereof, and not otherwise, the principal sum of One Thousand Dollars ($1,000) on the first day of December, 19--, and to pay interest on said principal sum solely from said income and revenue and not otherwise, at the rate of four per centum (4%), payable semi-annually on the first day of June and first day of December of each year, upon presentation and surrender of the respective coupons hereto attached as they severally mature, both principal and interest being payable at Atlantic National Bank in Jacksonville, Florida, or, at the option of the holder, at the Guaranty Trust Company in the Borough of Manhattan, City and State of New York, in any coin or currency of the United States of America, which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts.

'This certificate is one of a duly authorized issue of certificates, limited to an aggregate amount of $522,000, of like tenor and effect except as to number and maturity, is issued pursuant to and in full compliance with the Constitution and statutes of the State of Florida, particularly chapter 16981, Laws of Florida, Acts of 1935, and a Resolution of Board of Control of the State of Florida entitled, 'A resolution authorizing the construction of three dormitories at the University of Florida, a dormitory and a dining hall at the Florida State College for Women, and two dormitories at the Florida A. and M. College and, to aid in financing the cost of such construction, for the issuance of revenue certificates in the aggregate principal amount of $1,167,000 payable from the income and revenue derived from said dormitories and dining hall,' approved by the State Board of Education of Florida and duly adopted by the Board of Control prior to the issuance hereof, and said Resolution is hereby referred to and, as to all of its terms and provisions, is made a part of this certificate.

'This certificate is issued to aid in financing the cost of construction of three dormitories at the University of Florida at Gainesville, Florida, and is payable only from the fees, rentals, and other charges from students, faculty members, and others using or being served by, or having the right to use, or having the right to be served by such dormitories, and, together with all other certificates of the issue of which this certificate is one, is secured by a first, exclusive, and closed lien on the income and revenue (but not the real property of said University of Florida) derived from the fees, rentals, and other charges from students, faculty members, and others using or being served by, or having the right to use, or having the right to be served by such dormitories, all as in said Resolution provided.

'This certificate is an obligation of the Board of Control, payable only in accordance with the terms hereof, and is not an obligation general, special, or otherwise of the State of Florida. This certificate is not a bond or debt of the State of Florida, and shall not be enforceable against the State, nor shall payment...