163 So. 802 | Ala. | 1935
This is a suit in equity to establish a preference in favor of the city board of education of Athens for school funds being administered by that authority, and which were deposited in a bank now in liquidation, when the deposit was made by the treasurer of that fund without authority of law.
There is no effort to trace it as a trust fund, but the claim is based upon the prerogative right of the state so often declared *139 by this court in recent cases. There were three separate accounts in the bank made by the treasurer, each distinguished by the source of the revenue or the purpose for which it was to be used: (1) called "High School Building Fund," $21.04; (2) "City Schools," $210.10; (3) "District 34 Three Mill Tax," $668.75.
We think that the error which affected the decree of the court in finding that the funds were not state school funds was the emphasis placed upon the contention that the city board of education was an agency of the city and not the state, and should be placed in the same classification as a city in respect to this question. But, whatever may be its classification, as a city or state agency, and whether its creation is a feature of the charter powers granted to the cities by law or the Constitution, and whether it is a voluntary organization as an integral part of a city which is voluntary, questions which we do not consider controlling, the inquiry is dependent, we think, upon the qualities of the fund it is administering. Any person or authority, however set up, may be designated for the purpose of administering state funds, and the nature of the fund may not be affected by the constituent qualities of the agency.
It is important, in considering the qualities of a fund belonging to a county and created for county purposes, to determine whether a county is an involuntary creature of legislation and an arm of the state (Montgomery v. State,
If the Constitution raises the fund and directs its use in furthering a state function, it continues to be such a state fund regardless of the sort of agency designated to administer it. Likewise if the Legislature makes an appropriation of the state's funds to be so used.
We also think that all contributions from individuals and public or private corporations (section 258, Constitution), including cities, to the public school funds of the state, partake of the same nature as other moneys donated to public school purposes, after they have been placed under the power and control of the agencies created by law to administer them as such public school funds. They all then become of the same sort, regardless of their original source. Section 212, School Code.
In our recent case of Williams v. State for Use and Benefit of Pickens County,
The agreed statement of facts here is to the effect that the amount of $668.75, to which we have referred, represents money received from the tax collector of Limestone county, collected under assessments in district No. 34 of that county, being the city of Athens, by authority of section 280 of the School Code of 1927. That is the three-mill tax authorized by constitutional amendment. Code of 1923, p. 429, No. 3, § 2. Such funds shall be used for the exclusive benefit of the public schools of such district; in rural districts by the county board; in cities by the city board. Section 289, amended by Acts 1931, p. 559. Their nature and qualities are not affected by the circumstance that the county board or city board shall administer them, nor by characteristics of the administering board.
The facts further show that the item of $210.10 represents money appropriated to the city board of Athens by the county board under section 246, School Code, and *140
by the city council of Athens; the amount by each is not shown. The fund thus apportioned by the county board remains a portion of the state school fund, for section 246, construed in connection with section 256, Constitution, shows that to be true. See Harman v. Ide,
When the city makes an appropriation to school purposes (section 212, School Code; White v. Mayor Council of Decatur,
The facts do not show the source of the "High School Building Fund," but state that the treasurer of the city board of education had it on deposit as described. We think that circumstance fixes it as other public school funds of the state, but held for high school building uses.
But it is insisted that the city board cannot maintain this suit. Section 132, School Code, gives county school boards the right to sue and contract. They are created by section 86. They have been held to be quasi corporations with the right to sue and be sued. Turk v. Board of Education of Monroe County,
This suit is by the city board and its treasurer, without joining the city of Athens as a party. We take occasion here to say that the provision for suit by the city does not militate against the discussion we have here made as to the nature of the school fund. Recovery in any such suit would be for use by the city board of education, as the administering agency. We think that the city board is a quasi corporation for the same reason that a county board is such. It has the right to sue and be sued, except as otherwise provided, as by section 201. See section 208.
This is a proceeding authorized by section 6312, Code (Jackson v. Whitesell,
The general rule in equity is that both the legal and equitable owners of the fund or property involved must be before the court. Moore v. Pope,
Here such ownership is vested in the city board of education. The city of Athens is neither the legal nor equitable owner of the fund. The circuit court had the right to render final degree with the parties so constituted. Section 6645, Code. We think that it should have declared by its decree that the claims which we have here set out are preferred, and that it should not have dismissed the petition.
The judgment of the circuit court is reversed, and one here rendered so adjudging.
Reversed and rendered.
ANDERSON, C. J., and GARDNER and BOULDIN, JJ., concur. *141