STATE, EX REL., JOHN S. HARRIS, ET AL.,
v.
CITY OF FORT PIERCE, ET AL.
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A mandamus proceeding by bondholders of the City of Fort Pierce to compel the city to make provision in its current budget for the payment of interest coupons maturing during the fiscal year. The Florida Supreme Court held that city officials have a mandatory public duty under the city charter to make budgetary provisions for current interest payments on bonded debt, and bondholders are entitled to mandamus relief to enforce this duty.
Yes. City officials have a mandatory public duty under the city charter to make provisions in the current budget for payment of current interest accruals on the city's bonded debt in advance of default. Bondholders are entitled to mandamus relief to enforce this duty without needing to make a formal demand, and the city has discretion in how to comply (either by reallocating existing levies or imposing additional taxes).
“It must be presumed that a city council required by law to make provisions in a current budget for the payment of the city's current installments of principal or interest on its debts will, without any special request therefor, make such provision as the law contemplates and mandatorily requires shall be made.”
Establishes the presumption that public officials will perform their legal duties and the basis for mandamus relief in such cases
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Join FLexlaw to unlock all legal intelligenceThe relators owned bonds issued by the City of Fort Pierce. The last interest payment was made in July 1931, with some bonds in default since November…
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This is a .mandamus proceeding brought by the relators alleging themselves to be the owners and holders of certain bonds, of the City of Fort Pierce. Petition, was' filed and the alternative writ of. mandamus was issued against the city and its various officials to compel the city to make provision for the payment of certain interest coupons which will mature on bonds held by the relators during the current fiscal year.
The writ alleges that .the relators' are. the owners and holders of certain bonds of the City of Fort Pierce and describes them by the date of issue, the character, of. the bonds and the dates of maturities of the same and .the number of each of the bonds. It alleges that the last payment of interest made .on the bonds was in July, 1931, and that some of the bonds are in default since November, 1929. The provisions, of the City Charter requiring the City Commission to levy taxes to pay interest on the debt and providing a sinking fund are quoted. The writ shows that the total bonded debt of the city amounts to $3,257,000.00; that it is in default $258,225.00 in coupons and $300,000.00 in principal and there are current' accruals which amount to and additional $300,000.00 to be raised by the city to pay all of its past due and current obligations'.
*176The writ alleges that the relators attempted to negotiate with the city to- agree upon a reasonable levy for the current year; that the officials stated that they intended to levy 25 mills for current interest only; that request was made that the city allocate to the relators $33,420.00 for the payment of the interest that will accrue upon their bonds' during the current year out of any levy that might be made. No action having been taken, a formal demand was made for a special tax to provide this sum of money. On the night of October 31st, which was the night before the! tax books were required to be opened on November 1st, an ordinance was adopted by the city, making its levy of taxes for the current fiscal year, a 25-mill tax was' appropriated to the payment of interest and all principal of all bonds' and coupons matured during the fiscal year and for the purpose of providing a sinking fund for the payment of the bonds already accrued. This levy, the writ alleges, would produce only $105,000.00, if collected in full, while the total amount needed woul be in excess of $850,000.00.
The commands of the alternative writ of mandamus' are threefold: First, that the City Commission of Fort Pierce revise its budget so as to include therein a specific appropriation of the $33,420.00 for the payment of interest which will accrue during the current fiscal year on the bonds of the relators; second, that they revise their tax levy ordinance soi as to include a special tax which will produce a sum of money sufficient to pay the appropriation just mentioned; third, that the tax assessor revise the tax roll and the extension of taxes' in accordance with any amendment to the budget and tax-levying ordinance.
The return of the city admits all of the allegations of the writ, but undertakes to avoid the effect of the same by certain elaborate allegations of facts with which we are *177now required to deal in considering a motion by relafors to strike paragraphs, 9 and. 10 of the answer, as well as a demurrer to the ans'wer as a whole.
This Court has several times drawn the distinction between writs of mandamus which demand the levy of a tax to pay past due installments of principal or interest oh obligations which have been in default foil a period of months or years', and writs of mandamus timely brought to compel the levy of taxes to meet current interest requirements on obligations yet to mature. It must be presumed that a city council required by law to make provisions in a -current budget for the' payment of the city.’s current installments of principal or interest on its debts' will, without any special request therefor, make such provision as the law contemplates . and mandatorily requires shall be made. Accordingly, since the law presumes • that public officials will do their duty, Security holders of a city who must look to the city officials to make provision for the payment of current interest accruals on the city’s debts,, are entitled to the benefit of being permitted to indulge in the same presumption.
The pleadings show that the-City of Fort Pierce' has already levied taxes sufficient to rais'e the sum of. $105,000.00 for debt service generally. If a peremptory writ of mam damus following-the terms of the alternative writ as framed, should be awarded in the present case, the city would have the option of complying with the terms of this writ by either amending its heretofore adopted budget appropriation and tax-levying ordinance so as' to appropriate $33,-420.0Ó of the $105,000.00 provided to be raised so as to insure the payment of relators’ coupons, or to make an additional' appropriation of $33,420, coupled with an additional tax levy of 8 or more mills to- comply with the peremptory writ. So long as relator gets only what is prayed *178and so long as the prayer is' not beyond the law, respondents have no right to resist what is demanded.
Under the circumstances, the claim made in respondents’ answer that to award a peremtory writ of mandamus would create chaos and disorder by compelling the entire revision of the tax roll out of time is not justified. This- is so because the city has the option of itself deciding whether it will revise the whole roll or will simply appropriate a portion of the 25 mills already levied, without adding an additional 8 mills or more to the 25 mills heretofore provided for.
It clearly appears that relators are entitled under the contract and under the statute to the benefit of a writ of mandamus against the City of Fort Pierce to require the city to make provision in its current budget for the payment of the sum of $33,420.00 required to discharge the current interest coupons held by relators. The payment of interest must be anticipated under the law controlling the affairs of the city and that law requires the city to make provision in its budget for payment of its interest in advance of default. This duty exists and must be carried out regardless of any request or demand on the part of the security holder to do s'o.
Under the city charter of Fort Pierce, acts required by the city to be performed to provide for paying the interest on its bonded debts is a public official duty specially prescribed by law. No demand for its performance is necessary to be made by creditors because the city’s' own officers know it is their duty to perform certain acts and when. Therefore when it is affirmatively shown that they failed to act, at the time and in the manner provided by law, a writ of mandamus on behalf of a security holder for whose benefit the public duty is required to be performed, may be *179sought and granted to any plaintiff who demonstrates' in his writ that he holds some of the securities affected by the failure of the city officials to act. That relator asks for less relief than he might be entitled to have is of no concern to respondents. State, ex rel., Gillespie v. Baskin, 102 Fla. 329, 136 Sou. Rep. 262; Humphreys v. State, 108 Fla. 92, 145 Sou. Rep. 858; Columbia County v. King, 13 Fla. 451; State, ex rel., Aldrich v. Mitchell, 108 Fla. 233, 146 Sou. Rep. 207; State, ex rel., Harris v. Gautier, 108 Fla. 390, 147 Sou. Rep. 240. See also Jones v. Central Hanover Bank and Trust Co., 110 Fla. 69, 147 Sou. Rep. 895, 3rd, 4th, and 5th head-notes.
The demurrer to the answer as a whole is sustained, with leave to answer further within ten days.
Davis, C. J., and Terrell and Buford, J. J., concur.
Ellis and Brown, J. J., dis'sent.
(dissenting). — Section 2 of the amended answer denies that the Relators are the owners of the bonds, and alleges that they are mere agents of the owners. This allegation is admitted by the demurrer and motion for peremptory writ. So, it is not shown that Relators have the right to sue.
Ellis, J., concurs.
Final Judgment in Mandamus.
It appearing to this Court by the amended answer of the respondents herein, that the acts heretofore commanded by the alternative writ of mandamus to be performed by respondents have been performed by them in substantial compliance with the alternative writ of mandamus, and that nothing further remains to be done in the present proceeding for the complete termination therof according to law, it is' thereupon
*180Considered, ordéred and adjudged by the Court, that the -alternative writ of mandamus herein be, and the same is .•now hereby made perpetual and final, and that the return .«of the respondents showing compliance with said alternative writ of mandamus be, and the same is' hereby accepted, approved and filed as being in conformity thereto, and that -relators do have and recover of afid from the respondents, ..as officers of the City of Fort Pierce, Florida, the costs of .this proceeding to be taxed by the clerk. .
Davis, C. J., and Terrell, ' Brown and Buford, J. J., •concur.
•Brown, J.
(dissenting). — Section 2 of the amended answer denies that the Relators are the owners of the bonds, and alleges that they are mere agents of the owners. This allegation is admitted by the demurrer and motion for peremptory writ. So, it is not shown that Relators have the right to sue.
Ellis, J., concurs.
Final Judgment in Mandamus.
Per Curiam.
It appearing to this Court by the amended answer of the respondents herein, that the acts heretofore commanded by the alternative writ of mandamus to be performed by respondents have been performed by them in substantial compliance with the alternative writ of mandamus, and that nothing further remains to be done in the present proceeding for the complete termination therof according to law, it is' thereupon Considered, ordéred and adjudged by the Court, that the -alternative writ of mandamus herein be, and the same is .•now hereby made perpetual and final, and that the return .«of the respondents showing compliance with said alternative writ of mandamus be, and the same is' hereby accepted, approved and filed as being in conformity thereto, and that -relators do have and recover of afid from the respondents, ..as officers of the City of Fort Pierce, Florida, the costs of .this proceeding to be taxed by the clerk. .
Davis, C. J., and Terrell, ' Brown and Buford, J. J., •concur.
Cases With Similar Vibessemantic neighbors from the corpus
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City of Winter Haven v. State, 114 Fla. 527 (Fla. 1934)…ality to reduce the amount of special tax levy that would otherwise be required in order to meet the commands of a writ ordered to coerce an adequate levy sufficient to provide payment. See State, ex rel. Harris v. City of Fort Pierce, 112 Fla. 174, 149 Sou. Rep. 338. But a single writ commanding first the payment over of all moneys' actually on hand, and thereafter the levy of a [*531] special tax to pay a balance that may or may not be left due, is tod broad. This is so because the legal principles applicable…
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State v. City of Daytona Beach, 118 Fla. 773 (Fla. 1935)…atutes under which relators’ bonds were issued, make adequate provision in due course in the city’s current budget for the payment of maturing installments of principal and interest on the city’s bonds. State, ex rel. Harris, v. City of Fort Pierce, 111 Fla. 174, 149 Sou. Rep. 338. But any such presumption as a ground for denial of a writ of mandamus in the present proceeding is absolutely and affirmatively negatived by the allegations of the alternative writ which specifically set up that the City of Dayto…
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State v. City of Lakeland, 116 Fla. 713 (Fla. 1934)…an improper nominal party on the record. The objection that relator failed to make demand before institution of suit, insofar as long past due interest is involved, must be overruled on the authority of State, ex rel. Harris v. City of Fort Pierce, 111 Fla. 174, 149 Sou. Rep. 338, wherein this Court said: “The payment of interest must be anticipated under the law controlling the affairs of the city and that law requires the city to make provision in its budget for payment of its interest in advance of def…
Previewing 3 of 7 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Humphreys v. State, 108 Fla. 92 (Fla. 1933)
- Cnty. Comm'rs of Columbia Cnty. v. King, 13 Fla. 451 (Fla. 1869)
- State v. Baskin, 102 Fla. 329 (Fla. 1931)
- State v. Redmond B. Gautier, 108 Fla. 390 (Fla. 1933)
- Jones v. Cent. Hanover Bank & Tr. Co., 110 Fla. 69 (Fla. 1933)
- State ex rel. Herbert L. Aldrich v. Mitchell, 108 Fla. 233 (Fla. 1933)