Jackson v. Foster

• Decision Date: 11 May 1936
• Docket Number: 4-4328
• Citation: 94 S.W.2d 113,192 Ark. 712
• Parties: JACKSON v. FOSTER
• Court: Arkansas Supreme Court

94 S.W.2d 113

192 Ark. 712

JACKSON v. FOSTER

4-4328

Supreme Court of Arkansas

May 11, 1936

Appeal from Benton Chancery Court; Lee Seamster, Chancellor affirmed.

Decree affirmed.

Jeff R. Rice and J. T. McGill, for appellants.

Bernal Seamster, for appellee.

OPINION

MEHAFFY, J.

This action was begun by appellees, who are residents and owners of real property in Paving District No. 1 in the city of Bentonville, Arkansas, against the appellants for a restraining order, restraining appellants from wrongfully using State Aid Funds, and from discriminating between real property-owners in said improvement district.

The appellees' property is not located on the State highway. The improvement district owes approximately $ 54,000 bonded indebtedness. This indebtedness is a lien on all the real property in the improvement district. The State of Arkansas delivered to the commissioners of said district $ 30,385.33 State Aid Bonds to be used as provided by law. The commissioners have applied $ 4,000 of said bonds to the reduction of the bonded indebtedness.

On August 15, 1935, the commissioners of said district adopted the following resolution:

"Whereas the State of Arkansas has provided for the payment of the cost of paving State highways, improved by improvement districts in the State of Arkansas; and,

"Whereas in Paving Improvement District Number One of the city of Bentonville, Arkansas, all of Central Avenue lying in the limits of said Paving Improvement District No. One is a State highway, and by reason of the improvement of said State highway on said West Central Avenue and East Central Avenue, the State Refunding Board has issued and delivered to the commissioners of said paving improvement district the sum of $ 30,385.33, in State Aid Certificates; and,

"Whereas, the Board of Improvement of said Paving Improvement District No. One is of the opinion that the said State Aid Bonds were intended to be used and applied by the commissioners of said district for the purpose of relieving the property-owners in said district fronting upon State Highways Nos. 71 and 72, located in said paving district, and that the real property-owners located on said West Central Avenue and East Central Avenue and lying within said Paving Improvement District No. One, should be the beneficiaries of said payment in bonds by the State of Arkansas.

"Now, therefore, be it resolved by the Board of Commissioners of Paving Improvement District No. One of the city of Bentonville, Arkansas, that said State Certificates be used and expended for the purpose of paying off the assessment of benefits of the real property-owners fronting upon said Highway 71 and No. 72 and lying within the limits of said improvement district, and that the real property located in said paving improvement district and not located on either of said State Highways 71 and 72 are not entitled to share in the benefits derived or to be derived from said State Bonds or State Certificates received and held by the commissioners of this district.

"Passed, approved and adopted, this 15th day of August, 1935.

"Approved: (Signed) John B. Applegate,

"Chairman of Board of Commissioners.

"Attest: (Signed) W. E. Jackson, Secretary."

The appellants filed answer, and the case was tried on the following agreed statement of facts:

"It is agreed that plaintiffs are resident property-owners and own the real property set forth in the petition. That same is within the confines of Paving Improvement District No. 1, and it is further agreed that no part of said real estate is located on a State highway or continuation thereof. That assessment benefits against the real estate of plaintiffs have been made and are now in force by reason of the creation of said district. That W. E. Jackson, John B. Applegate and J. W. Blocher are the commissioners of said district, and at the present time said district is indebted in the sum of $ 54,000 for borrowed money, and that said commissioners received the sum of $ 30,385.33 par value State aid bonds bearing three per cent. interest from January 1, 1934, and which bonds were issued in accordance with the statutes enacted by the General Assembly of the State of Arkansas providing for State aid to municipal improvement districts improving State highways, and that the commissioners have sold and applied $ 4,000 of said State aid bonds toward the reduction of its indebtedness.

"It is agreed that the resolution set forth prior hereto was adopted by the Board of Commissioners, and that the properties of the plaintiffs are not located on a continuation of State highways in said district.

"It is agreed that the commissioners are carrying out the purpose and intention of said resolution to give the equitable benefits received from State aid bonds to the real property located on the State highways in said district, and are thereby lowering annual collection benefits levied against the real property located on said State highways in said district, and that said commissioners are not making any reduction of the...