Lloyd Crystal Post No. 20, The American Legion v. Jefferson County

• Decision Date: 19 June 1951
• Docket Number: No. 7713,7713
• Citation: 237 P.2d 348,72 Idaho 158
• Parties: LLOYD CRYSTAL POST NO. 20, THE AMERICAN LEGION v. JEFFERSON COUNTY et al.
• Court: Idaho Supreme Court

Page 348

237 P.2d 348

72 Idaho 158

LLOYD CRYSTAL POST NO. 20, THE AMERICAN LEGION v. JEFFERSON COUNTY et al.

No. 7713.

Supreme Court of Idaho.

June 19, 1951.

On Rehearing Nov. 26, 1951.

A. A. Merrill, Idaho Falls, Merrill & Merrill, Pocatello, for appellant.

T. Harold Lee, William P. Hemminger, Rigby, for respondents.

THOMAS, Justice.

The appellant, hereinafter referred to as the Legion Post, purchased the real property in question in 1929 to be used as a war memorial building; some of the funds used to purchase the property were secured from the State of Idaho and also from Jefferson County, pursuant to Chapter 1, Title 65 of the Idaho Code; the Legion Post also at that time executed a mortgage on the property to secure the payment of $4,400.

In 1934 the old garage building which rested upon the property at the time of purchase, was in a bad state of repair and needed reconditioning; there was an oral understanding between the Legion Post and the City of Rigby that the Legion Post would deed the property to the City and the City in turn, as the sponsoring agency, would seek W.P.A. financial assistance to repair, remodel and otherwise recondition the building so that it might be used as a community center, war memorial, a National Guard and Armory building; soon thereafter the Legion Post, by warranty deed, conveyed title to the property to the City of Rigby, one of the respondents herein, for a recited consideration of $1, which was not received; at the time of the conveyance to the City the mortgage above mentioned had not been paid; this deed was acknowledged February 28, 1936, some two years after its execution, and was not recorded until May 18, 1937.

The application of the City of Rigby to the Federal Government for W.P.A. funds was approved and the repair, remodeling and reconditioning of the building, financed by both Federal and municipal funds, was completed on or near June 1, 1937.

Before the warranty deed was recorded or the project commenced, the Legion Post again mortgaged the property to secure a loan of $3,200, and at that time the earlier mortgage was released and satisfied of record.

At or near the date of completion of the work on the building the City of Rigby gave a written lease of the premises to the Legion Post for a period of twenty-five years commencing as of January 1, 1937; under the terms of this lease the Legion Post was to pay the mortgage indebtedness and was to have possession of the property and to operate it through a manager selected by the Legion Post.

At all times following the purchase of the property by the Legion Post in 1929 it has been in the actual possession and enjoyment of and has exercised exclusive control and dominion over the property which has been used as a war memorial and armory and as a community or civic center; all the revenues derived from the operation of such property, which the record reveals were substantial, were received and used by the Legion Post and no claim thereto is now or has ever been asserted by the City.

On October 1, 1940 the Legion Post paid the mortgage indebtedness of $3,200 against the property and on April 7, 1943 the City of Rigby quitclaimed the property to the Legion Post; there was no ordinance passed, notice given or election held prior to such conveyance, but the conveyance was made pursuant to resolution of the City Council.

Commencing in 1939 and until the end of the year 1946 the Legion Post received public moneys from Jefferson County under the provisions of Title 65, Chapter 1, Idaho Code, to aid in the maintenance, upkeep and repair of the building; the property at all times has been exempted from taxation.

In the year 1949 the Legion Post purchased another tract of land contiguous and adjacent to the property involved, and in the year 1949 the Legion Post erected a machinery garage upon the land purchased in 1945; it also made other valuable improvements on the property purchased in 1945 in addition to the machinery garage to accommodate the National Guard, and also installed a vault and erected a plaque on the property. The structure erected upon the property purchased in 1945 adjoins the building previously repaired and reconditioned and both buildings have been used by the Legion Post as one structure.

In 1947 the County Commissioners of Jefferson County refused to make further appropriations to the Memorial Maintenance Fund for the repair, upkeep and maintenance of the building; at about the same time the City of Rigby exacted a charge from the Legion Post for curbing a sidewalk in front of the building, which the Legion Post paid; the City had never made a charge to the Legion Post for monthly water rentals until at about this time when it exacted such charges which were thereafter paid by the Legion Post.

In October, 1949 the Legion Post filed an action to quiet title to both tracts. The court decreed that the Legion Post was not the owner of nor did it have any right, title or interest in the lands which it had previously conveyed to the City of Rigby. It is from this portion of the judgment that appeal was taken.

The Legion Post has made numerous assignments of error, all directed at the failure of the trial court to find title in the Legion Post. It contends that the quitclaim deed from the City is a valid conveyance of title and that if this is not so that the Legion Post acquired title by adverse possession, and furthermore asserts that the City, in equity, is estopped to deny title in the Legion Post.

It is the contention of the respondents that the property having been held by the City of Rigby for public purposes and uses and having been used for such purposes, could not legally be conveyed except by the enactment of an ordinance and the holding of an election after notice in which a majority of the qualified electors at such election voted in favor of such conveyance, pursuant to Sections 50-1001 to and including 50-1006, Idaho Code; that any attempted conveyance without a compliance with such statutes rendered the transaction wholly void; that the doctrine of equitable estoppel cannot be invoked to prevent the municipality to assert its claim of title to the property; it is the further contention of the respondents that title to property held by a municipality for a public use cannot be acquired by adverse possession.

We will first consider the contention of appellant that the City of Rigby by its acts and conduct is estopped to deny the title of appellant.

Section 50-1001, Idaho Code, in substance provides that real property belonging to a municipal corporation shall not be conveyed except by ordinance duly passed by the City Council or Board of Trustees, after authorization by a majority vote of the qualified electors, residents of such municipality, to be cast at a special election to be...