O'Loughlin v. Dorn

• Decision Date: 03 December 1918
• Citation: 168 Wis. 205,169 N.W. 572
• Parties: O'LOUGHLIN v. DORN ET AL.
• Court: Wisconsin Supreme Court

168 Wis. 205

169 N.W. 572

O'LOUGHLIN

v.DORN ET AL.

Supreme Court of Wisconsin.

Dec. 3, 1918.

Appeal from Circuit Court, Buffalo County; George Thompson, Judge.

Action by James E. O'Loughlin against Albert Dorn and others. Judgment for defendants, and plaintiff appeals. Affirmed.

Plaintiff, as resident, voter, and taxpayer of the school district of the town of Glencoe, Buffalo county, brought this action in equity, on behalf of others in said district as well as himself, to enjoin the officers of that school district from in any manner paying certain notes of said school district or raising any tax or making any loan for such purpose.

At the annual meeting of the school district on July 3, 1911, resolutions were adopted to build a new schoolhouse, brick veneered, size 36x24, to have furnace heat, and with privilege of making larger; and that the board borrow $1,700 from the state trust fund.

At a special meeting on August 24th, more formal resolutions were adopted for the making of the $1,700 loan, purchasing the site, raising by tax a sum sufficient to pay the principal and interest on such loan, to dispose of the old school, and authorizing and directing the school board to proceed with the construction of the new schoolhouse.

In September, 1911, a contract was entered into between the school board and one J. G. Schneider, for the construction of a new schoolhouse at the price of $2,238. The building was completed early in 1912 and used from that time on by the district for school purposes. The $1,700 borrowed from the state trust fund was paid to the contractor, as well as $100 received on the sale of the old building, and on May 7, 1912, a note for $450, which seems to have been an agreed balance due on the contract, was executed on behalf of the school district by its officers with their individual guaranties and delivered to said J. G. Schneider, who sold the same to the Bank of Arcadia. No meeting of the school district or of the school board was held to authorize the giving of this note. The note was renewed from time to time thereafter by the then town officers, the renewal notes all to the Bank of Arcadia adding the accrued interest to the principal, so that at the time of the commencement of this action the amount of the principal and interest was $532.49.

At the annual meeting in July, 1912, the only reference to this matter was as follows: “Motion made and carried that if we can get out of paying the $450 to J. G. Schneider we will.”

At a special meeting of the district August 24, 1912, a resolution was duly carried that there be raised $477 for the purpose of paying the balance of the cost of the construction of the schoolhouse. At the annual meeting in July, 1913, a resolution was adopted that––

“Said school building be accepted by the district at the contract price of $2,150, and all the acts of said school board be hereby ratified and accepted.”

And also––

“That we raise by tax $470.25; during the year 1913 $150, during the year 1914 $175, and during 1915 $206.21.”

At the meeting on June 7, 1915, designated by the findings and so treated by the parties as the annual meeting, there was adopted by 21 to 6 votes, expressed by written ballots, a formal resolution reciting: The holding of the special meeting of August 24, 1911; the voting to build a new schoolhouse; that the school board proceed to build at a cost of $2,250; the raising of the $1,700 from the school trust fund, and the sale of the old schoolhouse for $100; the paying of the sum of $1,800 on the cost of its construction; the leaving of a balance of $450 due thereon “at the time of the completion and acceptance of said building, to wit, February 7, 1912”; that said balance of $450 with interest amounts to $532.49, which is still unpaid by said district; that the schoolhouse has been used as such since its erection, and the school district has accepted the same; that the school board acted in good faith and for the sole purpose of carrying out the intention and wishes of the qualified electors of said school district as expressed August 24, 1911; that the school district has had the use and benefit of said building and it has been satisfactory; that said school building be accepted by said school district at the contract price thereof and all the acts of said school board be hereby ratified, approved, and accepted; that the school district board be authorized to borrow $532.49 payable in four annual installments (specifying amounts and dates) with interest, for the purpose of paying the balance of the cost of building said schoolhouse; and, lastly, that a sum sufficient to pay the interest and principal of said loan as it becomes due be and the same hereby is levied upon the taxable property of said district.

On June 8th the school district officers met and borrowed $532.49 from the Bank of Arcadia and executed notes therefor in amounts and dates corresponding with the provisions made at the meeting of the day before. These notes were taken by the bank in lieu of the last renewal note for the first one of May 7, 1912.

After the trial, the court made findings determining the facts as stated above, and also a finding numbered 9, which is copied hereafter in the opinion; and further that the electors of the school district had full knowledge of the actions of the board at all times; and that with such knowledge they duly ratified, confirmed, and approved of such acts.

As conclusions of law it was found that the notes...