North Dakota Law Review/Volume 1/Number 3/Review of Important Decisions
REVIEW OF IMPORTANT DECISIONS
By C. L. Young
Bowman County et al, Plaintiffs and Respondents, vs. Win. A. McIntyre and the State Bonding Fund, Defendants and Appellants.
The district court overruled a demurrer to the complaint alleging that the official bond of the defendant McIntyre, as treasurer of the plaintiff company, was issued by the State Bonding Fund, under Chapter 158, Laws of 1919; that a certain bank was designated and qualified as a depository of county funds to the extent of $5,000.00; that between May 2nd, 1921, and April 13, 1923, the treasurer deposited an excessive amount of county funds in such bank, contrary to Chapter 56, Laws of 1921; that on April 13th, 1923, the bank closed; that on July 24, 1923, the board of county commissioners of plaintiff county discovered that excess deposits had been made, and on August 7th, 1923, the plaintiff county presented its claim to the commissioner of insurance. HELD: (1) Sections 7 and 8 of Chapter 158, Laws of 1919, providing that a claim against the State Bonding Fund shall be filed not later than sixty days after the discovery of a wrongful act on the part of any public employee for which the State Bonding Fund is, or may become, liable, are mandatory and create a condition precedent to claimant’s right of recovery. (2) The deposits by a county treasurer of county funds in a depository bank in excess of the amount of depository bonds of such bank, contrary to the provisions of Chapter 56, Laws of 1921, constitutes a breach of duty on the part of the treasurer, and a breach of condition of his official bond issued by the State Bonding Fund under the provisions of Chapter 158, Laws of 1919.
State, Plaintiff and Respondent, vs. First State Bank of Jud, et al, Defendants and Appellants:
The attorney general instituted an action under Chapter 137, Laws of 1923, to liquidate the affairs of the Mohall State Bank, its affairs being in the hands of one McIntosh, appointed receiver in an action theretofore commenced in district court under a former statute. The answer of the receiver sets up the unconstitutionality of said Chapter 137. This is the only question considered. HELD: (1) Under the constitution of this state all governmental power is vested in the legislature, except such as is granted to the other departments of government, or expressly withheld from the legislature by constitutional restrictions. (2) The only test of the validity of an act regularly passed by the legislature is whether it violates any of the express or implied restrictions of the state or Federal constitutions. (3) If the end be legitimate, all appropriate means plainly adapted to that end and which are not prohibited may constitutionally be employed to carry it into effect. (4) Chapter 137 of the Laws of 1923 is constitutional.
County of Burleigh, Plaintiff and Appellant, vs. Standard Oil Company of Indiana and International Harvester Company (two cases), Defendants and Respondents.
Following proceedings upon an order to show cause issued by the Board of County Commissioners of Burleigh County, the value of the so-called corporate excess of the corporations was placed on the tax rolls and equalized by the board for the year 1918, and subsequent years. On appeal to the district court judgment was entered declaring the assessments made illegal and void, and directing their discharge and cancellation of record. HELD: Section 2110 of the Compiled Laws of North Dakota for 1913, as amended by Chapter 221 of the Laws of 1919, Chapter 110 of the Laws of 1921, and Chapter 305 of the Laws of 1923, provides for the taxation of the corporate excess of domestic corporations or the value of the corporate stock over and above the value of the real and personal property, and does not apply to foreign corporations.
City of Dickinson, Plaintiff and Appellant, vs. Dakota National Bank et al, Defendants and Respondents.
A demurrer to a complaint on a depository bond given to the plaintiff by the defendant bank on February 28, 1916, was sustained. HELD: (1) Section 7 of Chapter 147, of the Session Laws of 1919, which required the deposit of public funds in the Bank of North Dakota, and prohibited, under penalty, their deposit elsewhere, terminated the liability of sureties on depositary bonds previously executed as to deposits subsequently made contrary to its provisions. (2) In an action against the sureties on a depositary bond given prior to the taking effect of such act, a complaint which fails to allege a breach of the obligation, that is a failure to pay over deposits made prior to the termination of the depositary relationship, is demurrable.