193 A. 5 | Pa. | 1937
Argued May 17, 1937. This is a bill to enjoin the purchase by the School District of Shamokin Borough of certain properties from the defendants. On February 2, 1925, and January 27, 1927, the directors decided to increase certain school and playground facilities; resolutions were passed that the properties "be hereby appropriated and condemned . . . " and the school directors "shall enter upon, take possession of and occupy the said lots or pieces of ground for school purposes." On August 13, 1927, agreements were executed between the school district and the property owners fixing the value of the properties at $87,000, and providing that deeds conveying title to the properties be placed in escrow conditioned upon the payment of the sums fixed within six months after demand for payment by the grantors, but demand could not be made before August 1, 1930. The grantors were permitted to retain possession without rental charge prior to payment; and no interest was to be paid on the sums until six months after demand was properly made. The school district was to pay all taxes and insurance. The deeds were executed and placed in escrow, and on August 2, 1930, defendants, William and Maude A. Helfenstein, *557 notified the school district that they desired payment on February 2, 1931. No provision for payment was made by the school district, and, the school directors, having changed, procured taxpayers to file this bill to restrain the board from making the payments. It was contended that no obligation was created as the contemplated payments increased the total indebtedness beyond the constitutional limitations.
The Chancellor found no condemnation had been effected, since no steps had been taken by the school district to physically mark or enter upon the properties as required by the Act of May 18, 1911, P. L. 309, Sec. 605,1 but that a contract to purchase had been executed on August 13, 1927, at which time the indebtedness to be incurred exceeded the constitutional limitation. The court en banc concurred in the holding as to condemnation and purchase but reversed the chancellor on the theory that the money that could have been collected from unused millage,2 coupled with the borrowing capacity remaining within the 2% constitutional limit, was large enough to pay the valuations fixed for the properties. It held that as it was the past practice of the school district to pay for property acquisitions out of new revenues, and three years were allowed before payment had to be made, this potential revenue was not *558 only security for but was to be used to pay for the properties. The bill was dismissed.
The court below was in error in holding there was no effective condemnation of the properties. In obedience to Article I, Section 10 of the Constitution no private property may be taken for public use without just compensation to the owner. With municipalities and other political subdivisions this must be through condemnation proceedings, otherwise the authorities become trespassers. The Act of May 18, 1911, P. L. 309, Section 605, gives school directors the power, where they cannot agree on terms of purchase with an owner of real estate selected for school purposes, to enter upon the property, designate its boundary, and "thereafter" use it for school purposes. Resolutions effecting condemnation could not be passed until there had been a failure to agree. The resolutions presuppose such inability to agree, and the regularity of the proceedings will not be inquired into when the condemnation resolutions are, as here, placed on the minutes, unless there is an affirmative showing that the minutes had no basis in fact, or were fraudulent. See Erie City v. Piece ofLand,
It is not necessary that the school directors take physical possession of the land. They did a series of acts which evidenced entry, possession and occupancy. They entered into the agreement of August 13, 1927; caused a survey to be made; and paid taxes and insurance as owners. The owners deposited deeds in escrow, as a result of which their power to sell to others was terminated; and while they remained in possession, they did so as lessees of the school district. The provisions of the School Code governing condemnation proceedings *559 were complied with by these acts. Where all the land of the owner is taken it is not necessary, in addition to a survey, to mark it; where only a portion of the land is taken the provision of the act requiring the boundaries to be designated applies.
The condemnation was not rendered ineffective because the property owners voluntarily coöperated in fixing the value of the properties condemned, making arrangements for payment and giving the school district a deed. The intent of the directors as evidenced by the resolutions of condemnation was to take the property regardless of the owners' consent. When a corporation, municipality or other governmental body having the power of eminent domain passes resolutions condemning land and effects a taking of it, the validity of this condemnation procedure is not impaired by a subsequent settlement and acceptance of a deed to the property from its owners, but such deed is rather in furtherance of the condemnation proceedings:Boalsburg Water Co. v. State College Water Co.,
The condemnation was completed under the original resolutions; the agreement of August 13, 1927, settled the amount and terms of payment. The school district could not thereafter recede from it: Peters v. Reading,
The question whether the properties were needed for school purposes or fitted for such use is not for us; it is an administrative matter, and in absence of fraud the action of the school directors condemning the properties is conclusive on us.
Decree affirmed at appellants' cost.
