State ex rel. Stearns v. Olson

• Decision Date: 28 October 1919
• Citation: 175 N.W. 714,43 N.D. 619
• Parties: STATE ex rel. STEARNS v. OLSON, State Treasurer.
• Court: North Dakota Supreme Court

43 N.D. 619

175 N.W. 714

STATE ex rel.

STEARNS

v.OLSON, State Treasurer.

Supreme Court of North Dakota.

Oct. 25, 1919.

Concurring Specially Opinion Oct. 28, 1919.

Syllabus by the Court.

Under the Workmen's Compensation Act, the state treasurer is made custodian of the fund, which is accumulated in the manner prescribed by law for the payment of claims allowed by the Workmen's Compensation Bureau. Held, that such fund is a special, and not a public, fund.

When a claim has been presented to the Workmen's Compensation Bureau by one who claims benefits under the Workmen's Compensation Act, and such a claim has been determined by the bureau, and a definite amount awarded the claimant, the bureau, under the provisions of the act, may draw its voucher, or, in this case, its voucher warrant, against the treasurer as custodian of such fund, directing the state treasurer as custodian of the fund to pay the claimant the amount stated in the voucher warrant.

Under said act, the state auditor has no authority to issue a warrant for the payment of any award made by the Workmen's Compensation Bureau.

Original application by State of North Dakota, on relation of Charles A. Stearns, for mandamus against Obert A. Olson, as Treasurer of the State of North Dakota and as Custodian of the North Dakota Workmen's Compensation Fund. Writ ordered to issue.

Robinson, J., dissenting.William Lemke, of Fargo, and L. J. Wehe, of Bismarck, for relator.

William Langer, Atty. Gen., and F. E. Packard, Asst. Atty. Gen., for respondent.

GRACE, J.

This is an application to this court by one Charles A. Stearns for a writ of mandamus, directing the state treasurer as custodian of the workmen's compensation fund to pay the relator the sum of $37.33, the amount of a voucher warrant issued to him by the North Dakota Workmen's Compensation Bureau.

The petition for the writ, in substance, shows that the relator is of lawful age, and a resident of the city of Bismarck, Burleigh county, N. D.; that the Sixteenth Legislative Assembly of the state of North Dakota enacted a law commonly known as the “North Dakota Workmen's Compensation Act,” which was approved by the Governor on March 5, 1919 (Laws 1919, c. 162); that defendant is the state treasurer of North Dakota and custodian of the North Dakota workmen's compensation fund; that the relator is entitled to certain benefits arising out of and under the provisions of said act; that on the 14th day of August, 1919, the relator became entitled to compensation by an award made by the North Dakota Workmen's Compensation Bureau; that it became the duty of said bureau to disburse to the relator compensation from the North Dakota workmen's compensation fund in the sum of $37.33; that pursuant to the act, the said bureau authorized, prepared, issued, and delivered to the relator, Charles A. Stearns, voucher warrant No. 1 for said sum as compensation which the relator was entitled to receive; that the fund out of which said compensation should be disbursed to the relator by said bureau is in the possession of the defendant, and is sufficient in amount to pay the relator the amount designated in the voucher warrant, and that it is the duty of the defendant to pay the same; that the relator presented to the defendant said voucher warrant on or about August 16, 1919; demanded payment of it out of said fund, which the defendant refused.

The matter came on for argument before this court; the defendant made no return to the order to show cause why the writ should not be issued, but did present a motion to dismiss the proceedings. The question presented is a very narrow one. It is as follows: When a claim has been presented to the Workmen's Compensation Bureau by one who claims benefits under the Workmen's Compensation Act, and such claim has been determined by the bureau, and it being further determined that the claimant is entitled to receive a certain sum of money as benefits under said act, and the bureau draws its voucher warrant as in this case, which is duly signed by the North Dakota Workmen's Compensation Bureau by the chairman and commissioners thereof, directing the state treasurer to pay to the claimant the amount stated in the voucher warrant, should such warrant be honored and paid by the state treasurer from the funds in his possession for that purpose, or should such voucher warrant first be presented to the state auditing board and by it approved, and a warrant issued therefor by the state auditor which shall show the approval of the auditing board in the customary manner?

Section 83, Constitution of North Dakota, reads thus:

“The powers and duties of the Secretary of State, Auditor, Treasurer, Superintendent of Public Instruction, Commissioner of Insurance, Commissioners of Railroads, Attorney General, and Commissioner of Agriculture and Labor, shall be as prescribed by law.”

[3] The state auditor's duties are prescribed by section 132, article 4, C. L. 1913. It is not necessary to insert in this opinion a statement of those duties as defined in said section. It is sufficient to state that his duties, as therein prescribed, largely relate to what may be termed “Public Money,” which belongs to the state. He is, in common language, the bookkeeper of the state's finances. Among other duties prescribed by subdivision 10 of section 132 may be mentioned the following:

“To audit all claims against the state, the payment of which is authorized by law.”

And also subdivision 7 of the same section which reads as follows:

“To keep an account of all warrants drawn upon the treasurer, and a separate account under the head of each specific appropriation, showing at all times the unexpended balance of such appropriation.”

Subdivision 14 of the same section reads as follows:

“To inspect, in his discretion, the books of any person charged with the receipt, safe keeping or disbursement of public moneys”

-and subdivision 15:

“To require at such times and in such forms as he may designate all persons, who have received money or securities or who have had the disposition or management of any property of the state of which an account is kept in his office, to render statements thereof to him, and all such persons must render such statements when so required by said auditor.”

Section 186 of the Constitution of North Dakota reads thus:

“No money shall be paid out of the state treasury except upon appropriation by law and on warrant drawn by the proper officer, and no bills, claims, accounts, or demands against the state, or any county or other political subdivision,shall be audited, allowed or paid until a full itemized statement in writing shall be filed with the officer or officers, whose duty it may be to audit the same.”

The money referred to in said section is money belonging to the state, which has been accumulated in the treasury as public funds, which are to be used in carrying on the state government. It means such money as is raised by taxation, or which has accumulated in the treasury by the payment of fees authorized by law to be charged for various purposes, or any manner which would constitute such money a public fund of the state. The auditor's duties relate to the public funds of the state.

Section 375, C. L. 1913, as amended by chapter 227, Session Laws of 1915, provides who shall be members of the auditing board, and prescribes their duties. Among other things, it is provided:

“It shall be the duty of the state auditing board to audit all claims, accounts, bills or demands against the state, except such as are now specifically accepted by law. Each and every claim, account, bill or demand against the state, paid by the state auditor, shall bear the approval of the state auditing board, and the state examiner shall hold the state auditor personally responsible for the sum of any or all bills paid by the state auditor which do not bear the approval of the state auditing board.”

[1][2] The duties of the state auditor and of the auditing board relate to the disbursement of public funds. The act of the Sixteenth Legislature of North Dakota, creating the workmen's compensation fund, contains, among others, the following provisions: Section 6:

“Every employer subject to this act shall contribute to the North Dakota workmen's compensation fund in proportion to the annual expenditure of money by such employer for the service of persons subject to the act.”

Section 10:

“The Workmen's Compensation Bureau shall disburse the workmen's compensation fund to such employés of employers as have paid into the said fund the premiums applicable to the classes to which they belong, who have been injured in the course of their employment, wheresover such injuries have occurred, or to their...