94 Neb. 470 | Neb. | 1913
Lead Opinion
This suit was instituted in the district court for Ouster county upon three judgments obtained by the Broken Bow Water-Works Company against the city of Broken Bow in the years 1892, 1898, and 1894, respectively, and thereafter assigned to plaintiff; all of said judgments now being dormant. From a judgment in favor of defendant, plaintiff appeals.
The controversy between the water-works company and plaintiff, as the assignee of its judgments, and the city has been considered by this court on four different occasions: State v. Royse, 8 Neb. (Unof.), 262, 269, 71 Neb. 1, and City of Broken Bow v. Broken Bow Water-Works
One of the defenses interposed by the city is that all of the judgments are barred by the statute of limitations. Counsel for defendant abandons this contention in his brief, and concedes that under the authority of Snell v. Rue, 72 Neb. 571, this defense must fail. The next defense is that the first and third judgments are void for want of jurisdiction of the court over the defendant when they were rendered. To this defense plaintiff pleads City of Broken Bow v. Broken Bow Water-Works Co., supra, as res judicata. We think this plea is good and that the validity of the judgments in controversy cannot again be inquired into.
The next defense, and the one which counsel for defendant characterizes as “the principal defense in this case,” is based upon the proposition that the city has fully discharged its obligation under its contract with the water company for the amounts agreed to be paid for hydrant rentals; that, the judgments being for hydrant rentals, they too are satisfied and discharged; and that the city has exhausted its debt-paying power with respect to its hydrant rentals under its contract with the water company. We do not deem it necessary to consider all of the arguments pro and con upon this point, but leave them to be considered, should they ever subsequently arise, in an action under issues properly framed and which squarely present such questions, which we do not think is true in the present case. The only question which we deem material to decide at this time is the right of the plaintiff to have a revivor of his dormant judgments.
Section 9 of the contract entered into between the city and the water-works company provided: “In consideration of the benefits which shall be derived by the said city and its inhabitants, * * * the city of Broken Bow * * * hereby promises and agrees to pay rent for the said 30 hydrants at the rate of $85 per annum, for each and every hydrant, '* * * in semiannual installments, bn the
Section 6 of the contract provided: “A sufficient tax, not exceeding seven mills on the dollar, shall be levied and collected annually upon all taxable property upon the assessment roll of said city, to meet the payments under this ordinance, when and as they shall respectively mature during the existence of any contract for hydrant rentals, and shall be levied and kept as a separate fund known as the ‘water fund’ and shall be irrevocably and exclusively devoted to the payment of hydrant rentals under this ordinance, and shall not be otherwise employed.”
On April 1, 1904, the city acquired the water plant through a sale by the master in chancery in a suit pending in the United States circuit court for the district of Nebraska, and since that time has controlled and operated the same. Upon the trial of this case it was stipulated as follows:
“It is admitted that each and every year during the existence of the water-works company and while it maintained and operated the plant and until the sale to the city of Broken Bow, April 1st, 1904, there was levied annually by the proper authorities a tax of seven mills on. the dollar assessed valuation, such levies being for and designated as hydrant rental, the same being levied for the purpose of paying hydrant rentals.
“It is stipulated, subject to such objections as may be interposed, that at the time of the acquisition of the Broken Bow water-works system by the defendant, the city of Broken Bow, there Avas on hand in said treasury in hydrant rental fund derived from the seven-mill leAry which had been levied annually theretofore $1,566.59, which fund or amount was retained and used by the city; that all other moneys realized from the seven-mill levy, from the beginning of the operation of the water-works plant until its acquisition as aforesaid by the defendant
It appears from the above stipulation of facts that the defendant city, at the time it acquired the water-works, had in its possession $1,566.59, derived from the seven-mill levy which had been theretofore annually levied. There is no claim that this money has ever been paid over to plaintiff. Counsel for defendant undertakes to justify the city in holding this money by stating that “the deed from the master in chancery in the foreclosure sale under the order and decree of the court conveyed to the purchaser, not only the plant and system, but also, ‘all rights, interest, title, claim and demands of every name and nature which have in anywise come to the said Broken Bow Water-Works Company, or in anywise arisen under a certain ordinance of the city of Broken Bow, passed on the 23d day of April, 1888, and all debts, dues, rentals, claims and demands of every name and nature however, arising against the said city, whether such have heretofore accrued and are now existing, or may at any time hereafter accrue to said company.’ The conveyance from the purchaser at foreclosure sale to the city contained likewise the same provisions as hereinbefore referred to.” To our minds this is a very unsatisfactory pretext under which to claim the right to retain over $1,500 which defendant admits was collected under the seven-mill levy, and which under its contract with the water company it agreed should be “levied and kept as a separate fund known as the ‘water fund’ and' shall be irrevocably and exclusively devoted to the payment of hydrant rentals under this ordinance, and shall not be otherwise employed.” Plaintiff had, with the full knowledge of the city, become the ' owner of the three judgments long prior to the commencement of the foreclosure proceedings in the federal court. He thereby became entitled to receive all hydrant rentals derived fro.m the seven-mill levy. Such rentals, as soon as collected, became a trust fund to “be irrevocably and ex
The other questions argued in the briefs and at the bar are important questions, which we now think we made a mistake in permitting the parties to press upon us in this action. They are questions which it is not necessary, nor proper, to decide at this time. This action is, to all intents and purposes, one to revive dormant judgments, and Avill be so treated. The only questions we are called upon to decide are Avhether the judgments are void, and, if not, wliether or not they have been paid. That they are valid judgments is res judicata; that they have not been paid is conceded by the stipulation above set out. Hence, the judgments ought to be revived.
The judgment of the district court is therefore reversed and the cause remanded, with directions to enter judgment of revivor of the three judgments in controversy.
Reversed.
Concurrence Opinion
concurring.
This action is brought upon three judgments rendered
In the City of Austin v. Cahill, 99 Tex. 172, 88 S. W. 542, the city had issued its bonds for Avater and light, and the ordinance provided that there should be levied and collected for the year 1890, and for each year thereafter, a tax to pay the interest and provide a sinking fund. There was a limit allowed by the constitution of 2£ per cent, on the taxable property of the city for any one year. It was held that the neglect' of the city to perform its contractual obligations did not enable the city to escape that duty, and that it might be forced to perform the same by mandamus.
In East St. Louis v. Amy, 120 U. S. 600, the city of East St. Louis issued its bonds, and had neglected to make the leA^y for a number of years, AAdien the plaintiff sued to compel' payment. It was objected that a tax could -not be levied in any one year sufficient to make good the past defaults. Chief Justice Waite said: “The accumulation
In Coy v. City Council of Lyons City, 17 Ia. 1, the court said: “The object of the suit is to compel payment, and the defense only shows an inability, under the law, to levy sufficient to satisfy it in one year, but a clear ability to do it in subsequent years. The court * * * will grant complete relief by providing for the payment of the whole debt.”
In City of Cleveland v. United States, 111 Fed. 341, where there was a limit to which the city could tax, and and it had neglected to make the levy in former years as provided by the contract, the court held that there was no reason why the relator should be without relief simply because it was beyond the power of the city to levy the whole amount in any one year.
Four opinions have been delivered by this court whicli relate to this case. The first was prepared by Commissioner Frank Irvine, who describes the case as “an action by the city of Broken Bow, with which joined a citizen and taxpayer (Taylor Flick) against the Broken Bow Water-Works Company and others to enjoin the defendants from enforcing three certain judgments recovered by the water-works company against the city.” City of Broken Bow v. Broken Bow Water-Works Co., 57 Neb. 548. The opinion in that case (which we will call the Taylor Flick case) makes the subject matter of this particular case res judicata. After this comes the case of State v. Royse, 3 Neb. (Unof.) 262, filed July 1, 1902, three years after the Flick case was decided. There was a rehearing in the Royse case November 18, 1903, and Commissioner Oldham prepared a second opinion 3 Neb. (Unof.) 269. Then there was a second motion for rehearing, and Chief Justice Holcomb wrote an opinion filed February 4, 1904, denying the motion. 71 Neb. 1.
The first of the Oldham opinions in the Royse case contains this statement (p. 266) : “A judgment against
In United States v. County of Macon, 99 U. S. 582, it was said: “The judgment has the effect of a judicial determination of the validity of his demand and of the amount that is due, but it gives him no new rights in respect to the means of payment.” In that case a mandamus was refused, but it was not determined that the money due might not some time be collected.
In United States v. County of Clark, 96 U. S. 211. it was held.: “That the bonds are debts of the county as
It does not follow that ten mills on the dollar would be required to pay the general expenses of the city every year. Then, if there should be an excess raised by the levy of ten mills above that required to pay the general expenses of the city, it would be proper under the last Oldham opinion to apply that sum. In the Holcomb opinion it is said: “It is agreed that the judgments owned by the relator represent an adjudication of the liability of the city of Broken Bow, for sums due as hydrant rental
In United States v. County of Clark, supra, a county had subscribed for stock of a railroad corporation, and had issued bonds in payment thereof, pursuant to a law which authorized a levy of a special tax to pay them “not to exceed one-twentieth of one per cent, upon the assessed value of taxable property for each year.” Among other conditions, it was urged by the defense that the relator was not entitled to a warrant payable out of the ordinary revenues of the county. The United States supreme court said: “The question presented by the record is, whether the relator is entitled to payment of his judgment out of the general funds of the county, so far as the special tax of one-twentieth of one per cent, is insufficient to pay it.” An examination of the decision in United States v. County of Clark, supra, shows that it was held that the bonds were the debts of the county as fully as any other of the county’s liabilities, and that for any balance remaining due on account of principal or interest after the application of the proceeds of the tax, being not to exceed one-twentieth of one per cent, upon the assessed value of the taxable property for each year, the holders would be entitled to payment out of the general fund of the county. This view is clearly and ably expressed by Justice Strong in Macon County v. Huidekoper, 33 L. ed. (U. S.) 914 (134 U. S. 332). The first point in the syl
Under the oral stipulation and by reason of the judgment rendered in the Taylor Flick case (57 Neb. 548) the validity of the judgments was determined. Of this Taylor Flick case Commissioner Irvine, in delivering the opinion of this court, says: “The petition did not state a cause of action.” He then sets out the contents of the petition, being the ordinance in full, the alleged levy of seven mills tax each year, and the statement that the judgments, with accrued interest, amounted to $8,685.78, all of which the plaintiffs then averred to be in excess of the limit stipulated by said ordinance, and also in excess of the amount that said city could lawfully contract to pay for water service. The question was then discussed
This action is to be regarded as one upon domestic judgments, or as an action to revive dormant judgments Snell v. Rue, 72 Neb. 571. The plaintiff owns these judgments; they have not been paid; on their face they are dormant. They ought to be revived.
It is the opinion of the writer that, where a case is tried in the district court upon pleadings which necessarily require a consideration of the issues and facts in dispute between the parties, and such issues and facts are determined by such court in favor of the plaintiff and its judgment is rendered concerning them in favor of the plaintiff, and thereafter on appeal the case is considered by this court, and the judgment of the district court is reversed and this court renders its judgment against the plaintiff and in favor of the defendant, a subsequent examination of the same issues and facts in a new case in the district court between the same parties will be considered barred, and the subject matter of the inquiry and the condition of the parties relating thereto will be regarded as res judicata.
Dissenting Opinion
dissenting.
The majority opinion refuses to determine the principal questions presented in the .case, but leaves them “to be considered, should they ever subsequently arise, in an action under issues properly framed and which square!y present such questions.” Thus, the door is opened and further litigation invited. It seems to me that the issues are “properly' framed” and that the matters thus evaded are “squarely” presented. This is an action at law upon
I am not aware of any other form of action that this plaintiff could bring that would more properly or fairly present the questions that these parties have tried to present. If there can, under our practice, be an action more “iiroperly framed” which would more “squarely present such questions,” the majority opinion does not indicate what that action would be.
By the second paragraph of the syllabus it is declared that in an action upon domestic judgments the creditor may have both a new judgment and a revivor of the old, and yet in this case he is allowed only a revivor of the old judgments without regard to equitable defenses.
In statutory proceedings to revive a judgment, if it is conceded that the judgment was originally valid, the only
The concurring opinion attempts to discuss the merits of the case, but that discussion is unsatisfactory to my mind, and, of course, is useless jn view of the decision of the majority of the court.
Concurrence Opinion
I concur in the opinion of Judge Eawcett reviving the judgment so as to permit them to be used to reach the money in the hands of the city arising from the seven-mil] levy, if the same is properly liable to be so applied, but express no opinion as to that issue.
T think Judge Sedgwick is right in his dissenting opinion as to the desirability of ending the litigation, and believe that no recovery can be had in excess of the annual seven-mill levy.