School Dist. No. 7 v. School Dist. of St. Joseph

• Decision Date: 01 July 1904
• Citation: 82 S.W. 1082,184 Mo. 140
• Court: Missouri Supreme Court
• Parties: SCHOOL DIST. NO. 7, TP. 57, R. 32, BUCHANAN COUNTY, v. SCHOOL DIST. OF ST. JOSEPH, BUCHANAN COUNTY.<SMALL><SUP>*</SUP></SMALL>

82 S.W. 1082

184 Mo. 140

SCHOOL DIST. NO. 7, TP. 57, R. 32, BUCHANAN COUNTY, v. SCHOOL DIST. OF ST. JOSEPH, BUCHANAN COUNTY.^*

Supreme Court of Missouri.

July 1, 1904.

CONSTRUCTION OF STATUTES — SCHOOL DISTRICTS — EFFECT OF EXTENDING CITY LIMITS.

1. Rev. St. 1899, §§ 9860, 9875, 9876, relating to the organization of schools, change of boundary lines, and annexations to school districts when corporate limits are extended, have no application to school districts in cities having a population of more than 50,000 and less than 300,000.

2. The extension of the limits of a city having a population of 50,000 and less than 300,000 did not, of itself, or by operation of law, extend its school district lines so as to include a portion of an adjoining school district, as that could only be done as provided by Rev. St. 1899, § 9898.

In Banc. Cross-Appeals from Circuit Court, Buchanan County; A. M. Woodson, Judge.

Action by School District No. 7, Township 57, Range 32, Buchanan County, against School District of St. Joseph, Buchanan County. From the judgment rendered, both parties appeal. Reversed.

Grant Watkins and Brown & Dolman, for plaintiff. Thos. J. Porter, for defendant.

GANTT, J.

"The plaintiff school district was organized under the general laws of the state April 13, 1892, and, in addition to its other territory, included a tract of land which was platted and known as `Saint George.' It then purchased a schoolhouse site, consisting of five lots, in the Saint George plat, and received in its own corporate name a deed therefor, issued bonds in the amount of $9,000, payable May 13, 1912, with 6 per cent. interest, payable semiannually, sold the bonds at par, and immediately expended the entire amount realized in the erection of a schoolhouse on the site so acquired. By ordinance approved December 1, 1899, the city of St. Joseph, a city of the second class, containing a population of 103,000, extended its limits over that portion of the plaintiff's school district known as St. George without any action or consent on the part of any of the people in the territory so included. The three directors of the school district all resided in Saint George. Afterwards, acting in good faith, upon the theory that the extension of the city limits had in no way affected their school district, the three directors called an election to determine whether the plaintiff district should issue additional bonds to the amount of $10,000 to improve and enlarge the schoolhouse. The election was called and held at the schoolhouse in Saint George, and seven voters, all residing in Saint George, voted for the issue of the bonds, and no other votes were cast. Thereupon the proposition was regularly declared carried, and the bonds were issued on the 31st day of July, 1900, bearing interest at 4½ per cent. per annum, and were sold at par, and all the proceeds invested by said directors in enlarging and improving the schoolhouse. On the 15th day of May, 1901, there was on hand of money of the school district $2,613.13, interest and sinking fund on account of the $9,000 of bonds, and $267.08 of other moneys applicable to school purposes, amounting in all to $2,880.21. On that day the said directors turned over all this money, together with the schoolhouse and lots and all other property of plaintiff district, to the defendant, and defendant, out of this money, paid out the $267.08 for school expenses in Saint George — $540.68 for interest on the $9,000 issue of bonds, leaving $2,072.45 of the interest and sinking fund unexpended, which defendant brought into court after this suit was brought, and tendered back to plaintiff. The assessed valuation in 1889 of the property contained in that part of the plaintiff school district included in Saint George was $210,020; that included in the remainder of the district was $235,875. The testimony tends to show that from 30 to 50 children from that part of the plaintiff school district outside of St. Joseph attended the Saint George school in the fall of 1901 without paying tuition. It also tends to show that some children outside St. George were refused the privilege of attending. The city of St. Joseph was, by special act of the Legislature approved January 4, 1860, organized for school purposes under the name of `St. Joseph Board of Public Schools,' and continued this organization until the act of March 15, 1895 (article 3, c. 154, Rev. St. 1899), when it organized under that act as the `School District of St. Joseph,' and ever since the 15th of May, 1901, has been holding and using the said schoolhouse in Saint George, collecting and receiving school taxes from that part of the old district known as Saint George, of which it had, at the time this suit was instituted, received $383.81, and will continue to do so unless prevented by the judgment of this court, and refuses to surrender any of the property so in its hands, or to make any adjustment respecting the relative rights of the parties. The schoolhouse and ground is worth at least $20,000 for general purposes, and its fair rental value is $1,200 per year. The petition prays an injunction restraining the defendant from interfering with its controlling jurisdiction for school purposes over that part of the district known as Saint George, and requiring defendant to surrender to plaintiff the schoolhouse, apparatus, appliances, and moneys in its hands, and have an accounting of moneys, taxes, and apportionments received, including the use of its schoolhouse and for judgment for the same, and, if the court should hold that Saint George is now a part of the defendant school district, then for an equitable adjustment of the rights and liabilities of the parties and creditors and for general relief. It is admitted that plaintiff ought to have judgment for $2,072.45 for interest and sinking fund appropriated, but not expended in the payment of interest, but defendant contests the return of the $267.08 of the money levied for teachers and incidental fund."

On the part of defendant the answer ad-swer admits the incorporation of plaintiff as alleged, and alleges: That it is a school district organized by virtue of and in pursuance of an act of the General Assembly of this state of March 15, 1895. That by virtue of said act it succeeded to all property, rights, and privileges of "the St. Joseph Board of Public Schools," created by an act of the General Assembly approved January 4, 1860, which had conducted the schools in said school district until defendant was organized under the act of 1895. That by virtue of said act last mentioned defendant became subject to the laws of this state relating to city, town, and village schools. The said city of St. Joseph at that date and now having a population of more than 50,000 and less than 300,000 inhabitants, defendant became by virtue of said act, invested with all the rights, powers, and privileges conferred, and subject to all duties enjoined, by article 3, c. 154, Rev. St. 1899. Denies that it had full or any knowledge of the election and issue, pursuant thereto, of $10,000 of the bonds of plaintiff mentioned in plaintiff's petition, or of the sale of said bonds, or the investment of the proceeds thereof in said schoolhouse. Denies that it made no claim to said property, and insists that by the extension of the city limits of the city of St. Joseph the limits of defendant school district of said city was likewise extended to the same extent and in like manner. Denies that plaintiff was ignorant that such extension affected plaintiff and the inhabitants of said district, or that plaintiff honestly believed that it continued to own said schoolhouse, and that its limits continued as they were before such extension. Denies that defendant wrongfully induced the directors of plaintiff to turn over to defendant said school building and lot and the moneys on hand, amounting to $2,835.21, and denies that it has wrongfully converted the same to its own use. Denies that defendant has wrongfully collected taxes belonging to plaintiff district to the amount of $545.96, or that said money is now in its possession. Denies that the school building and real estate is of the value of $27,000. Denies all knowledge or information whether plaintiff district, if shorn of the St. George district, cannot pay its indebtedness, or whether plaintiff will not be able to issue bonds to build another schoolhouse, and will be deprived of all power to carry on a public school for said plaintiff district.

"Further answering, defendant states that by the extension of the limits of the city of St. Joseph, as stated in plaintiff's petition, the limits of defendant school district were extended to the same extent, and that such extension took effect on the 1st day of July, 1900; that, notwithstanding such extension of the limits of defendant district so as to include the territory described in plaintiff's petition as St. George, plaintiff, by and through its officers, continued to conduct its school in the school building mentioned in plaintiff's petition, levying and collecting taxes, and receiving the apportionments of the public school funds, in like manner and effect as though the boundaries of plaintiff district had not been altered, until on or about the 4th day of May, 1901, at which time the acting directors of plaintiff and defendant districts, concluding and in good faith believing that the limits of defendant district had been extended as aforesaid, and meaning and intending to discharge their respective duties as such officers, agreed with each other that defendant should carry on the schools in said building for the then current term, as instituted by plaintiff district, adopting its contracts for teachers, janitors and all other purposes, which was accordingly done, and in consideration for which plaintiff district, through its said officers, caused to be turned over and paid to defendant all moneys derived from taxation...