85 N.W. 988 | N.D. | 1901
This is an appeal from a judgment rendered by the District Court of Richland county directing the issuance of a peremptory writ of mandamus compelling the officers of Dwight and Ibsen school districts to levy a tax upon the property of the districts to pay their pro rata share of certain judgments recovered against Dwight school township. This litigation has been before this court twice before, and for a full statement of the facts see opinion of Corliss, J., in 3 N. D. 249, 55 N. W. Rep. 587, 28 L. R. A. 649, and 7 N. D. 418, 75 N. W. Rep. 795. In the first appeal it was strenuously insisted by counsel for Dwight school township that there was no liability, upon the ground, among others, that, as the indebtedness to collect for which an action was commenced was incurred by school district No. 22, Dwight school township, which was organized under Chap. 44 "of the Laws of 1883, and
This disposes of all questions raised by appellants except one, which we -will now briefly consider. After the liability of Dwight school township was fixed by judgment, the territory originally constituting such school township was divided into two civil townships. By this division two new school districts were by law created, and they are known as “Dwight” and “Ibsen” school districts, respectively. Both immediately organized themselves into school corporations, and both were made parties, and answered in this proceeding. Each, by the act of incorporating, became liable for its proportionate share of the indebtedness of the old township. The trial court apportioned such indebtedness according to the taxable property in each district, but counsel contends that the court had no' right to do this, and that such apportionment should not be based upon the taxable property, and he refers to those provisions of the law relating to settlements between districts and the levy of an equalization tax to adjust such differences. We must overrule this contention, as we are convinced that each district should be required to levy a tax to pay its just proportion of the indebtedness of the old district according to the proportion of its taxable property. In other words, the entire taxable property which was formerly included in the school district is liable for the payment of this indebtedness, and by dividing the township each new district would be liable to such pro rata share of the indebtedness as the amount of .its taxable property bears to the entire indebtedness, and the new districts thus formed would be left to adjust between themselves all differences as to their assets and liabilities. The creditors have no concern with their adjustment of such differences. Some courts have gone to the extent of holding that each new district is liable, and may be required to pay the entire indebtedness of the old district, and then look to the other district or districts for contribution. Plunket’s Creek Tp. v. Crawford, 27 Pa. 107; Hughes v. School Dist., 72 Mo: 643. In the Missouri case it was held that where, by statute, a municipal corppration is abolished, and several new ones are created in its stead, and no provision is made as to the payment of existing debts, each of the new corporations is liable for them all; and in the latter case it was held that on the division of a township