STATE OF FLORIDA, EX REL., NEW YORK LIFE INSURANCE COMPANY, A CORPORATION, RELATOR,
v.
LESLIE A. CURRY, AS MAYOR OF THE CITY OF KEY WEST, FLORIDA, ET AL., RESPONDENTS

Fla. | 1932-02-16
104 Fla. 242 Florida Supreme Court (1932) Positive Treatment
Also reported at: 139 So. 891
Cited by 32 cases

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Synopsis

New York Life Insurance Company, a bondholder of Key West, Florida, sought mandamus to compel the city council to pay past-due interest on a bond coupon from available sinking fund monies. The Florida Supreme Court granted the peremptory writ, holding that a bondholder may use mandamus to enforce payment from municipal funds when there is sufficient money on hand, even if the municipality owes other creditors from the same fund.


Holding

A bondholder holding a claim secured by general taxation may proceed by mandamus to enforce payment when there is sufficient available funds on hand out of which payment is authorized and required to be made. The fact that the municipality owes other creditors from the same insufficient fund constitutes no defense to the mandamus action.


Key Quotes

“general creditors of a municipality, holding claims secured by the general power of taxation, are entitled to proceed by mandamus to enforce payment of their demands, where there is a fund on hand out of which payment is authorized and required to be made and which is sufficient for that purpose”

Establishes the core holding that bondholders may use mandamus to enforce payment from municipal funds when funds are available

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Facts & Procedural History

New York Life Insurance Company held a bond coupon (number 38) issued by the City of Key West that matured July 1, 1931, and was entitled to $1,250 in…

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Opinion of the Court
Davis, J.

Davis, J.

—In this ease an alternative writ of mandamus was issued out of this Court requiring the respondents, Leo H. Warren, George L. Babcock, Ambrose W. Oleare, William A. Freeman, Ulric Gwynn, V. A. Johnson and Carl Thompson, as and constituting the City Council of the City of Key West, Florida, and their successors in office, forthwith and without undue delay, to pay over to the relator, a bond holder of the city’s bonds, the sum of twelve hundred and fifty dollars alleged to be on hand in the sinking fund of said City, available for payment of the past due interest owing by the city to relator on account of interest • coupon numbered 38, held and owned by relator, which matured July 1, 1931.

*244To this the respondents answered that the City of Key West had on hand in its interest and sinking fund the sum of $2,402.63, but that the City was in default in the payment of $12,925.00 owing for interest which became due prioh to July 1, 1931, on its other outstanding bonds. The defense is that the City of Key West should not be required to pay relator’s interest coupon numbered 38 which matured July 1, 1931, until such time as the City has paid the interest coupons due on its bonds falling due prior to date of maturity of relator’s claim.

Relator moved for a peremptory writ, the return to the contrary notwithstanding and that motion came on for hearing before the Court sitting en banc for the purpose of hearing arguments in several other similar cases then pending which involved substantially the same question and which have since been decided.

On the authority of DuPoht Ball, Inc., vs. S. E. Livingston, decided at the present 'term, the opinion in which was filed January 12, 1932, the relator’s motion" for a peremptory writ in this ease should be granted, and it will be so ordered.

In the case just cited it was held that general creditors of a municipality, holding claims secured by the general power of taxation, are entitled to' proceed by mandamus to enforce payment of their demands, where there is a fund on hand out of which payment is authorized and required to be made and which is sufficient for that purpose when the holder of a claim having a right to enforce the duty of payment, institutes his suit for that purpose. In cases like this, the writ of mandamus is employed in like manner as an execution at law on a judgment for the debt, and the writs of mandamus when applied for and issued, accordingly take priority among themselves in the order in which service of them is made on the respondents.

The fact that the municipality owes others equally en*245titled to payment out of tile funds on hand, or that such others have demanded payment out of the same funds, which are insufficient to pay all having demands to assert, constitutes no' defense which can be advanced on behalf of the original debtor. State ex rel. Gillespie vs. Carlton, Governor, decided at the last term, opinion filed December 9, 1931.

Mandamus being in the nature of an execution to compel the application of available funds to a .matured demand, neither presentation for payment by relator, nor demands foT payment served by other adverse claimants to the same fund, is material to the award of a peremptory writ, when it sufficiently appears that the indebtedness of the city sued for is due and that there are funds on hand available for application to discharge it in accordance with the municipality’s contract to pay. See State ex rel. National Discount Corporation vs. S. E. Livingston, as Mayor, et al., decided at the last term, opinion filed December 11, 1931.

Peremptory writ of mandamus awarded.

Buford, C. J. and Whitfield, Edlis, Terrell and Brown, J.J., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By (11 total)

  • State ex rel. T. v. Buckwalter, 112 Fla. 200 (Fla. 1933)
    …pay all matured obligations payable from the same fund, provided such obligations are payable from a “replenishable” as distinguished from a “closed” fund. State ex rel. v. Livingston, supra; State ex rel. v. Curry, filed February 16, 1932, reported 139 Sou. 891; State ex rel. v. Smith, filed May 2nd, 1932, reported 141 Sou. 318; State ex rel. v. Carlton, 103 Fla. 810, 138 Sou. 612. In the case of Humphries v. State ex rel., supra, this Court, speaking through Mr. Chief Justice Davis, said: “This Court ha…
  • …ll claims that are filed against it. State ex rel. DuPont Ball, Inc., v. Livingston, 104 Fla. 33, 139 Sou. Rep. 360; State ex rel. Buckwalter v. City of Lakeland, 112 Fla. 200, 150 Sou. Rep. 508; State ex rel. New [*140] York Life Ins. Co. v. Curry, 104 Fla. 242, 139 Sou. Rep. 891; State ex rel. Rempsen v. Smith, 105 Fla. 368, 141 Sou. Rep. 318; State ex rel. Gillespie v. Carlton, 103 Fla. 810, 138 Sou. Rep. 612. See also the recent opinion in United States ex rel. Guaranty State Bank v. Okeechobee County,…
  • State v. Smith, 105 Fla. 368 (Fla. 1932)
    …n and surrender by relator. Neither demand, nor presentation, nor offer to surrender in advance of the institution of suit, was necessary to be shown by the holder to entitle relator to such relief. See State ex rel. New York Life Ins. Co. v. Curry, 104 Fla. 242, 139 Sou. Rep. 891; Rountree et al. vs. State ex rel. Georgia Bond & Mortgage Co., 102 Fla. 246, 135 Sou. Rep. 888. Since by the terms of the writ’s commands, the relator could only obtain the payment of such coupons upon presentation and surrender…
    1 / 2

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