Frank v. Butler County

Citations

• 139 F. 119
• 71 C.C.A. 571
• 1905 U.S. App. LEXIS 3862

Syllabus

<p>1. Municipal Corporations — Validity op Bonds.</p> <p>The Constitution of Nebraska authorized the issue of bonds by a county in aid of the construction of railroads on condition of the vote of the qualified electors of the county authorizing the same, with the proviso that the bonds or evidences of indebtedness so issued should not be valid unless the same shall have indorsed thereon a certificate signed by the Secretary and Auditor of State, showing that the same are issued pursuant to law. Statutes were enacted by the state Legislature in execution of the constitutional provision, requiring that such bonds should be presented for registration to the state officer, and for their certification as aforesaid. Held, that the bonds so authorized by such a vote, and issued by the county commissioners, without such registration and certification, were nonenforceable in an action at law against the county at the suit of the holder of such bonds.</p> <p>2. Equitable Remedy and Laches.</p> <p>The holder of a part of said bonds in 1880 presented them for registration and certification, which were refused by the State Auditor for the reason that the proposition submitted to the electors was in the alternative — for a subscription to one of two roads which should first comply with subsequent conditions, one of which did accept the subscription and comply with the conditions imposed. In subsequent mandamus proceedings, at the relation of other holders of the same issue of bonds, to compel their registration and certification, the Supreme Court of the state upheld the action of the State Auditor. In 1903 the present suit in equity was brought, alleging that said bonds were legally entitled to registration, and that the refusal of the State Auditor was wrongful. Invoking the rule in equity that regards that as having been done which should have been done, the bill prays for a decree for the enforcement and collection of the bonds. Held, in view of the long lapse of time and.the