Powell v. Bainbridge State Bank, (No. 4754.)

• Decision Date: 19 February 1926
• Docket Number: (No. 4754.)
• Citation: 161 Ga. 855,132 S.E. 60
• Parties: POWELL et al., School District Trustees. v. BAINBRIDGE STATE BANK.
• Court: Georgia Supreme Court

161 Ga. 855

132 S.E. 60

POWELL et al., School District Trustees.

v.BAINBRIDGE STATE BANK.

(No. 4754.)

Supreme Court of Georgia.

Feb. 19, 1926.

(Syllabus by the Court.)

The trustees of a local school district are not empowered or authorized by law to borrow money. Consequently, where such trustees borrowed $2,200 from a bank upon the draft of the secretary of said board of trustees upon the tax collector, which was accepted by the latter, no liability attached to the local school district or to the trustees who succeeded the original borrowers. 8 Park's Code Supp. 1922, § 1438m; Miller County v. Fudge, 62 S. E. 154, 4 Ga. App. 637; Civil Code 1910, § 303.

Under the principle just announced, it was error to overrule a general demurrer to a petition seeking a mandamus absolute to compel the board of trustees to pay the indebtedness claimed by the bank as having been incurred by the preceding board of trustees.

(Additional Syllabus by Editorial Staff.)

Error from Superior Court, Decatur County; W. V. Custer, Judge.

Petition for mandamus by the Bainbridge State Bank against J. T. Powell and others, School District Trustees. Judgment for petitioner, and defendants bring error. Reversed.

T. S. Hawes, of Bainbridge, for plaintiffs in error.

Hartsfield & Conger, of Bainbridge, for defendant in error.

RUSSELL, C. J. [1] On August 6, 1924, the trustees of the Brinson consolidated school district, at that time composed of J. T. Powell, A. Y. Jones, H. H. Brinson, W. W. Russell, and C. S. Hodges, issued a draft which was accepted by T. M. Battle, tax collector, which was traded to and discount-ed with the Bainbridge State Bank; the board of trustees receiving the proceeds of the draft, which was executed to carry on and operate the Brinson consolidated school for the fall session of 1924. Subsequently three new members of the board of trustees were substituted for Jones, Brinson, and Russell, to wit, Otis Baggerly, W. H. Powell, and R. L. Z. Bridges. When the debt to the bank matured on January 2, 1925, the board of trustees as then constituted refused to pay the draft or the indebtedness which it represented. Thereupon the bank filed a petition for mandamus to compel the trustees of the Brinson consolidated school district to pay the same. The facts stated above appear from the petition; and it is alleged, in addition, that the fiscal year of the schools of Georgia is from January 1 to January 1 of each year; that the defendants as trustees have or will have a sufficient amount from the available funds for the scholastic year of 1924, over and above the necessary expenses of operation, to pay the obligation; that the local tax of 1924 will amount to $2,300; that there is now in the hands of the treasurer, from the funds of 1924, $1,078; that the tax collector now has on hand collected from the local tax of 1924 a sufficient amount to pay off and discharge the debt; that the law contemplates that the funds derived for a scholastic year shall be appropriated to the operation and expenses of the schools of that year, and, there being a sufficient fund in the hand of the local treasurer and of the tax collector, either actually collected or that may be collected out of the revenues for the year 1924, to pay the obligation, there is no valid reason why this should not be done; that the board which was constituted when the fund was procured acted in good faith, and the petitioner, in cashing the draft on said acceptance, acted in good faith; and that as the action of the board of trustees was in their official capacity, and petitioner has no adequate remedy at law, the board of trustees as such should be requited to issue its check, signed by the secretary and treasurer and countersigned by the president of the board, to pay said indebtedness. There was a prayer for a rule nisi, for the grant...