Los Angeles City High School District v. Culver City High School District

DRAPEAU, J. The electors of Culver City Elementary School District voted to withdraw the territory comprising that district from the Los Angeles High School District, and to form Culver City High School District. This election was held January 19,1949. The two high school districts will here[301]after be referred to as Los Angeles district and Culver City district.

The election was canvassed by the Board of Supervisors of Los Angeles County. The board made its order dated January 25, 1949, declaring the election carried.

While the proceedings for withdrawal were pending, and prior to January 25, 1949, the board of supervisors received bids on bonds of the Los Angeles district in the sum of 15 million dollars. The high bidder was a syndicate managed by Bank of America. The syndicate agreed to take the bonds if delivered prior to March 15, 1949, and if its counsel approved the validity thereof.

This bid was accepted January 11, 1949. The bonds were delivered January 31, 1949, six days after the order of the Board of Supervisors establishing the Culver City district.

The question here involved is whether the bonded indebtedness was incurred before or after the withdrawal of the territory of the Culver City district.

Los Angeles district takes the position that the bonded indebtedness was incurred when the bid was accepted, January 11, 1949, and, in any event, that the territory was not withdrawn from the Los Angeles district until July 1, 1949.

Culver City district takes the position that the territory was withdrawn January 25, 1949, prior to the delivery of the bonds, and that the territory of that district is not subject to taxation for any part of the interest or principal thereof.

These contentions turn upon the application of sections 3603 and 1591 of the Education Code to the foregoing facts. These sections are as follows:

Section 3603. Continued liability for proportion of bonded indebtedness. Any elementary or union elementary school district electing to withdraw from a high school district shall continue to be liable for the same proportion of the bonded indebtedness of the high school district, incurred before tjie withdrawal, as it would have been liable for had it not withdrawn.