Rogers v. Le Sueur County
| Decision Date | 11 June 1894 |
| Docket Number | 8822 |
| Parties | Luther Z. Rogers v. Le Sueur County et al |
| Court | Minnesota Supreme Court |
Submitted on briefs June 1, 1894
Appeal by the defendants, the Board of County Commissioners of the County of Le Sueur, O. H. Chapman, Chairman, and Michael Keogh, County Auditor, from an order of the District Court of Le Sueur County, Frances Cadwell, J., made March 13, 1894 refusing to dissolve an injunction.
The plaintiff, Luther Z. Rogers, filed his complaint February 13 1894, stating that he is a citizen and taxpayer of Le Sueur County, that the taxable property in that county is $ 4,446,310, that on July 20, 1893, the board of county commissioners resolved to build a new courthouse at a cost of $ 40,000 and to issue and sell negotiable bonds for that amount to pay the expense and are now about to contract for its construction and to involve the county in debt and to pledge the credit of the county for that sum and unlawfully increase the rate of taxation; that the previous indebtedness of the county over and above money in the treasury is $ 7,000, that the board in July. 1893, levied on the taxable property $ 18,000 to pay current expenses for the fiscal year, all of which will be required for that purpose. He prayed that defendants be enjoined from building such new courthouse and from making any contract therefor and from pledging the credit of the county for such purpose and from executing and selling the bonds of the county and from levying a tax for any and all county purposes in excess of five mills upon the dollar of assessed valuation of the taxable property therein. On this complaint and affidavits in support thereof the plaintiff obtained an order for and sued out a temporary injunction restraining defendants from issuing such bonds and from making or incurring any indebtedness for a new courthouse until the further order of the court in the premises.
The defendants answered that they were about to issue courthouse bonds for $ 40,000 payable between January 1, 1895, and 1914 with interest semiannually at the rate of five per cent per annum; that on January 1, 1894, the indebtedness of the county was $ 4,167.36, that in addition thereto there were ditch contracts outstanding to the amount of $ 2,136, and that since January 1, bills had been allowed and warrants issued for $ 2,074.61 more. They further answered that the resources of the county on January 1, 1894, were as follows viz: County revenue, current and delinquent taxes uncollected, $ 20,640.60; Courthouse fund uncollected, $ 3,124.80; County ditch liens and interest, $ 7,580.43; Available cash in treasury, $ 1,663.22; Making total assets, $ 33,011.05. They further set forth at considerable length the present inconvenience and showed the pressing necessity for a new courthouse.
On this answer and supporting affidavits the defendants moved the court to dissolve the temporary injunction. After argument the court modified the injunction so as to permit the board to make in the year 1894 any contract which would not involve the county in any pecuniary liability in excess of $ 7,355.35, but in proceeding to erect a courthouse the board were restrained from making in any year any contract whereby a liability on the part of the county would be incurred which would render it necessary, to meet the same and the current expenses of the county, to levy a tax in excess of five mills on the dollar.
In a note filed with the order the court said, the board has the power and it is its duty to provide a suitable courthouse. 1878 G. S. ch. 8, §§ 85, 86, 110. But it has no power to borrow money and issue bonds therefor or to make any contract during any year whereby it will be necessary, in order to pay the debt so incurred and meet the current expenses of the county, to levy a tax in excess of five mills on the dollar. 1878 G. S. ch. 11, § 114. Chaska Co. v. Carver Co., 6 Minn. 204, was decided prior to this statute. The present rule is expressed in Goodnow v. Commissioners of Ramsey Co., 11 Minn. 31; Johnston v. Becker Co., 27 Minn. 64. Counties have not the power to borrow money and issue commercial paper unless it is given by express legislation. Claiborne Co. v. Brooks, 111 U.S. 400.
From the order defendants appeal.
The order appealed from should be affirmed.
M. R. Everett, Thos. Hessian and Charles C. Kolars, for appellant.
The board has power to borrow money for the purpose of building a courthouse. 1878 G. S. ch. 8, §§ 86, 110, 111, confer that power upon it. In Chaska Co. v. Carver Co., 6 Minn. 204, this question was decided in the affirmative. That decision was affirmed in Nininger v. Carver Co., 10 Minn. 133, and in Cushman v. Carver Co., 19 Minn. 295. It has also been recognized in Auerbach v. Le Sueur Mill Co., 28 Minn. 291, and in Sullivan v. Murphy, 23 Minn. 6. Nothing antagonistic to this view appears in Johnston v. Becker Co., 27 Minn. 64.
W. C. Odell, for respondent.
To meet the current expenses of Le Sueur County for the present fiscal year, a levy was made in the sum of $ 18,000. An additional levy for courthouse purposes was made in the sum of $ 3,124.80. Making the gross amount of the tax levy for the present fiscal year $ 21,124.80, or within $ 1,106.75 of the limit of tax levy prescribed by law. With this condition of things the board is about to contract for the erection of a new courthouse to cost $ 40,000, and to sign, issue and negotiate the interest bearing bonds of the county in that sum to raise money with which to pay the cost. The spirit of 1878 G. S., ch. 11, § 114, is to prevent boards of county commissioners from creating any indebtedness which cannot be paid with funds then available and by the tax levy of the current year. Niles Water Works v. City of Niles, 59 Mich. 311; Johnston v. Becker Co., 27 Minn. 64.
Boards of County Commissioners are prohibited from exercising any power other than such as is expressly given by law, or is necessary to those which are granted. 1878 G. S. ch. 8, § 114. Borough of Henderson v. County of Sibley, 28 Minn. 515.
OPINION
On the 20th of June, 1893, the board of county commissioners of Le Sueur county passed a resolution in which they resolved to build a new courthouse for the county at a cost of $ 40,000, and on February 5, 1894, applied to the board of investment of the state school fund for the loan of that sum, to be used for that purpose; and defendants allege in their answer that said board of investment granted their application.
The plaintiff, a property owner and taxpayer of the county, then brought this action to restrain the incurring of said indebtedness, and the issuing of bonds therefor, and procured a temporary writ of injunction against the board of county commissioners and county auditor. On filing their answer defendants moved to dissolve said injunction, and upon the hearing the injunction was modified, so that the part which enjoined the issuing of bonds was allowed to stand. The injunction was also allowed to stand to the extent of enjoining the defendants from entering into any contract whereby a pecuniary liability on the part of the county shall be incurred during the year 1894 in excess of the sum of $ 7,355.35, which includes $ 3,124.80 of taxes levied by the board on the taxable property of the county in 1893, or whereby a pecuniary liability shall be incurred during the year 1894 which, with the...
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