Tulare Irrigation District v. Shepard

Citations

• 185 U.S. 1
• 22 S. Ct. 531
• 46 L. Ed. 773
• 1902 U.S. LEXIS 2252

Syllabus

<p>The Tulare irrigation_district, in. California, issued and sold its bonds for the purpose of constructing-its irrigation works. The proceeds were used for that purpose by the corporation, and the works were by means thereof constructed. The corporation then refused to pay the bonds, and denied its liability on them upon the ground that it was never legally organized as a corporation, and hence had no legal right to issue any - bonds. Held, on the authority of Douglas County Commissioners v. Bolles, 94 U. S. 104, that common honesty demanded that a debt thus incurred should be paid; and that there was nothing 'in the facts in this case to'set aside the application of that principle; that if anything could constitute a defacto corporation the defendant is one and that, being thus a defacto corporation, none but the State can question its existence.</p> <p>Under the circumstances stated in the opinion of the court, the landowner is estopped from setting up the defence of the want of notice, as against the plaintiff in this case.</p>