Wm. N. Coler & Co. vs. Dwight School Township.
Opinion filed April 25th, 1893.
De Facto Municipal Corporation.
The county superintendent of schools, under chapter 14, Laws 1879, organ- ized a school district, school district officers were elected, and exercised the func- tions of their respective offices; teachers were employed by the district, and school was taught therein, and a school meeting was held in the district to vote upon the question of issuing bonds to build a school house. Such bonds were thereafter issued. In an action upon some of the interest coupons of such bonds, held, that the district was a de facto municipal corporation, and that therefore the defense could not be interposed that the bonds were void on the ground that the district had no legal existence because of failure to comply with provisions of the statute regulating the organization of such districts in matters which went to the jurisdiction of the county superintendent to organize the district.
Estoppel by Recital in Bonds.
Municipal corporations are estopped, as against bona fide holders of municipal bonds, from setting up as a defense to an action thereon that all the preliminary steps necessary to authorize the issue of the bonds were not taken, when the officers who have charge of the issue of such bonds are especially or impliedly authorized to determine whether all the conditions precedent to the issue of valid bonds have been complied with, and recite in the bonds so issued that they have been complied with. It is not necessary to estop the corporation that this statement should set forth in detail that all the preliminary steps have been taken. It is sufficient that it declare that the bonds are issued in pursuance of a certain statute, specifying it. Neither is it essential that the officers issuing the bonds should be expressly authorized to determine such questions. It is sufficient if they are given full control in the matter.
Organization of District—Liability for Debts.
A school township organized under Ch. 44, Laws 1883, becomes, immediately upon such organization, liable for debts of a district, the school house and furniture of which become the property of the school township. This liability is complete, and does not depend upon the settlement of equities between several districts included in the new school township, under § § 136, 138, Ch. 44, Laws 1883.
Appeal from District Court, Richland County; Morgan, J.
Action by William N. Coler and William N. Coler, Jr., partners under the firm name and style of W. N. Coler & Co., against Dwight School Township of Richland County, on the interest coupons of certain bonds. Judgment for plaintiffs. Defendant appeals.
