Carpenter v. Glenn-Colusa Irrigation District

THE COURT.

This is an action by the holder of bonds of an irrigation district to recover a money judgment against the successor of the district.

Glenn-Colusa Irrigation District, defendant herein, was organized in 1920. In 1924 a plan was proposed for its consolidation with Williams Irrigation District, a smaller district. This plan was carried out by an election called for the purpose, and thereby the Williams Irrigation District became a part of defendant.

Plaintiff is the holder of unpaid bond interest coupons of the old Williams District which matured after the consolidation, in the sum of $18,000. He brought this action, alleging his ownership and that the coupons were presented

[340]

to the treasurer of defendant district with demand for payment, which was refused. The prayer was for a money judgment against the district. A general demurrer was sustained without leave to amend, and judgment for defendant followed. Plaintiff appealed.

This case is controlled by

Moody

v.

Provident Irr. Dist.,

12 Cal. (2d) 389 [85 Pac. (2d) 128], It was therein pointed out that under section 52 of the California Irrigation District Act, registration of unpaid bonds or coupons amounts to a new agreement, in which the interest rate rises from 6 per cent to 7 per cent, and the statute of limitations is tolled, until such time as money becomes available to pay the obligations. It followed, therefore, that no additional right would be gained by the entering of a money judgment, which would be an idle and unnecessary act. Accordingly it was held that an action to recover such a judgment was improper.

Plaintiff necessarily concedes the force of the above decision, but suggests exceptions to the rule by reason of certain asserted differences in the facts of the present case.

The first point urged is that this action seeks to establish the liability of the defendant, Glenn-Colusa Irrigation District, for the old obligations of the Williams Irrigation District. Plaintiff relies on certain general observations in