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28 Cal. 393

Chapman v. Morris

California Supreme Court

Decided July 15, 1865

California Supreme Court · decided 1865-07-15

The Act of April 5th, 1861, to fund the indebtedness of Los Angeles County, then outstanding in the form of county warrants, provided that the county should not pay any interest on any warrants issued after July 1st, 1861. In 1864 the county had outstanding a large amount of warrants unpaid, which had been issued under the Act of 1861, and did not draw interest.

Cited by 1 later decisions — most recently April 1892

1 state decisions

Relies on People ex rel. Blanding v. Burr · People ex rel. McCullough v. Pacheco · People ex rel. County of Contra Costa v. Board of Supervisors

Good law ✅— No negative treatment on recordhow we know

Decided 1865-07-15

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¶1By the Court,

Sawyer, J.

¶2Section eighteen of the Act of 1861, authorizing Los Angeles County to fund its indebtedness, provides that no interest shall *395be paid on any warrant drawn on the County Treasurer after July 1st, 1861.

¶3In 1864 another Act was passed authorizing the further funding of the indebtedness of the county, which should accrue prior to July 1st, 1864; and the Act provides, that, on all indebtedness entitled to be funded on that day, interest shall be allowed at the rate of ten per cent per annum from the date of the protest of the same by the County Treasurer, to said July 1st, 1864. This provision embraces warrants that were not to bear interest under the Act of 1861.

¶4The only question made by the appellants is, that the provision authorizing interest to be allowed on those warrants, which, by the Act of 1861, bore no interest when the indebtedness was incurred, and the warrants drawn, is unconstitutional and void. The bonds to be issued were made payable in twenty years, with interest at only seven per cent. The county being unable to pay its warrants as they were issued, the postponement of the payment for a period of twenty years, at the low rate of seven per cent per annum interest, would seem to be a sufficient consideration for allowing interest from the time of protest for non-payment till the time of funding. At all events, the postponement gave the holders an equitable claim to the allowance of interest which it was competent for the Legislature to recognize, and authorize to be paid. The principles announced in Blanding v. Burr, 13 Cal. 349 ; Contra Costa County v. Board of Supervisors of Alameda County, 26 Cal. 649; and People v. Pacheco, 27 Cal. 176, are applicable to this case. Upon the authority of these cases the provisions of the Act complained of must be held to be constitutional.

¶5Judgment affirmed.

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