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126 Cal. 252

58 P 532

Meyer v. Widber

California Supreme Court

Decided October 3, 1899

California Supreme Court · decided 1899-10-03

<p>Dupont Street Bonds—Demand bob Payment—Pbeeerred Cdaim.— Under the act of" 1876 for the improvement of Dupont street, in San Francisco, a mere demand upon the county treasurer for the payment of bonds and coupons issued thereunder, which is not followed by any legal proceeding to enforce payment, whether there be, or be not, at the time money on hand to pay them, does not give to the person making the demand a preferred claim to moneys in the county treasury passed to the credit of the bond and coupon funds. [Beatty, C. J., Temple, J., and Henshaw, J., dissenting.]</p> <p>Id.—Application of Money in Treasury—Mandamus—Refusal of Prior Demands.—A holder of such bonds making demand for payment of money in the treasury applicable to the payment thereof is entitled to a writ of mandate against the treasurer; and payment thereof cannot properly be refused on the ground that prior demands had been made upon the treasurer by the holders of other bonds, to whom payment had been refused, and who had taken no steps to enforce their claims. [Beatty, C. J., Temple, J., and Henshaw, J., dissenting.]</p> <p>Id.—Moneys Held in County Treasury—Certificate of Auditor Essential.—No moneys held in the county treasury by the treasurer are subject to the payment of demands, unless received therein upon the certificate of the auditor required by sections 4145 and 4217 of the Political Code.</p> <p>Id.—Special Deposit in Sealed Bags—Settlement of Tax Collector with Auditor—Power of Treasurer.—Moneys collected by the tax collector applicable to Dupont street bonds and coupons, which are mingled with other tax moneys, and left in sealed bags with the treasurer, prior to the settlement of the tax collector with the auditor, are a quasi special deposit. The treasurer has no duty to investigate as to such moneys, and has no authority to pay out any part thereof on any demands until such settlement is made, and the moneys are placed to the credit of the proper funds upon the certificate of the auditor.</p> <p>Id.—Delay of Tax Collector—Rights of Bondholder.—The delaj' of the tax collector in making his settlement with the auditor cannot confer the right upon a bondholder to compel payment by the treasurer of bonds and coupons prior to the settlement. He should first compel such settlement before making his demand upon the treasurer.</p>

Relies on Bates v. Gerber

Good law ✅— No negative treatment on recordhow we know

Decided 1899-10-03

How this case has been cited

Cited by 20 later decisions — most recently April 1940

4 federal appellate · 16 state decisions

130189919001910192019301940decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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BEATTY, C. J., dissenting.

¶1 —I dissent. The grounds upon which the judgment of the superior court are reversed are, in my opinion, absolutely inconsistent with the fundamental proposition upon which appellant’s right of action is based. He proceeds by mandamus, and therefore assumes, and must maintain, that his demand for payment of his bonds and coupons cast upon the defendant the duty to pay them as far as the funds in his hands would suffice. But if a demand upon the treasurer made it his legal and imperative duty to pay, then it was his legal ■and imperative duty to pay those who presented the first demands, and, as their demands were more than sufficient to' exhaust the fund, it could not be his duty to pay to appellant the identical money which he was already hound to pay to others unless they had in some'manner forfeited their rights. It devolved upon the appellant, therefore, to show that when he commenced this proceeding those who had made prior demands upon the treasurer had in some way lost the right of action which ■accrued to them when their demands were refused, for if their right of action remained—if it was still the duty of the treasurer to pay them—it could not be his duty to pay the appellant. How, then, and at what time, did those other parties lose their *260 right of action? This question the appellant has essayed, but failed, to answer. It is not pretended that it was barred by any statute of limitations, hut it is said that they were guilty of inexcusable laches, because they waited six months without commencing proceedings by mandamus. No authority is cited by the court which has the remotest tendency to support this position, and those cited in the brief of appellant are decidedly against him. They show undoubtedly that the right to proceed by mandamus may be forfeited by laches, but they also show that in determining what will he deemed laches the courts are guided by the analogies furnished by the statutes of limitations, which in this case would permit a delay of four years in commencing the proceeding after the right accrued. The general doctrine, and the grounds of it, are briefly stated in section 87 of Merrill on Mandamus, as follows: “The courts require those who would avail themselves of the assistance of this writ to he prompt in demanding the enforcement of their rights. By lapse of time the necessary evidence is lost, and third parties may acquire rights growing out of the existing state of affairs. Where the parties have been guilty of unreasonable delay in applying for this writ, the courts have not hesitated to refuse such relief, unless the delay was accounted for to their satisfaction. In determining what will constitute unreasonable delay, regard should he had to the circumstances which justify the delay, to the nature of the case and the relief demanded, and to the question whether the rights of the defendant or of other persons have been prejudiced by such delay.”

¶2 To apply this doctrine let us consider the nature of this case, and the only relief which the holders of the coupons and bonds could have demanded. In cases where an action will lie on such obligations the action is barred by the statute in four years, and by the analogy of the statute a mandamus to enforce payment would be defeated by a delay of four years. If, under the circumstances, the lapse of a shorter time involved the loss of material evidence, or if rights of third parties were adversely affected, relief might he denied on that ground. But here is no pretense that any evidence was, or could be, lost in six months or six years. Nor was any right of any third party adversely affected. It was no injury to Meyer or any other claimant upon *261 the fund if those who had secured the first right to the money then on hand chose to let it lie in the treasury. They alone were injured by the delay.- The city apd county was not injured, because it is in no event liable for any part of the debt. The fund was not depleted, and could not be, for the coupons ■are not bearing interest (Bates v. Gerber, 82 Cal. 550), and nothing is paid out of the bond fund except the face of the bonds. The court, however, holds, against the clear result of the authorities, that six months’ inaction on the part of these claimants has worked a forfeiture of their rights. But if six months is fatal, why is not six weeks fatal? Or six days? Or one day? Where will the line be drawn, and upon what principle is the distinction to'rest? After how short a delay in bringing suit will we conclude that perchance the party will never sue, or that his claim has been abandoned, or paid through some other channel? These presumptions in which the court indulges are without anything in the record to sustain them, and are against all probability, as they are against the correctness of the judgment of the superior court.

¶3 Nor has it been pointed out how the law itself (the Dupont street act) has provided other ways by which their (the .prior demandants’) claims may be satisfied. Nor have I been able to see, as the court does, that they probably do not want their money. Is it upon such fanciful suppositions as these that a judgment of this court can be securely rested?

¶4 The truth is, the doctrine of this case, carried to its logical conclusion, will permit the custodian of a fund in the position of this defendant to pay or refuse to pay those who make demands as his fancy inclines. As long as he is not sued he may refuse one and pay another, irrespective of the order of their ■demands, or he may refuse them all until some favored claimant ■serves him with a writ of mandate. The doctrine is, in my opinion, without reason to support it, and is pernicious in its consequences.

¶5 Temple, J., and Henshaw, J., concurred in the dissenting opinion.

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