Lord v. Lund

VAN DYKE, J. Proceeding in contempt.

In 1930 the Board of Supervisors of Butte County created an improvement district under the County Improvement Act of 1921 (Stats. 1921, p. 1658) for the purpose of making certain improvements in the designated area. The work was done and bonds were issued. Assessments levied to pay the bonds became delinquent and on August 30, 1937, the lands [661]were sold to the state for the sum of $12,828.03. Bondholders then brought action to compel the board of supervisors to levy a tax in accordance with the act to provide money wherewith to pay the sum for which the lands were sold. This court ordered the supervisors to do this. (McGrath v. County of Butte, 30 Cal.App.2d 734 [87 P.2d 381].) The tax was levied and the money so provided was paid into the bond redemption fund. When demand was made that the disbursing officers of the county, the treasurer and the auditor, pay these moneys to the bondholders they refused to do so and a second proceeding in mandate, this time against these officers only, was begun. After some time it was stipulated that a writ issue. By that writ this court commanded the respondents, who are the same persons now brought before this court in this proceeding, that they disburse the moneys in the fund to the bondholders; and this court further commanded them, as such officers, to audit and issue warrants and pay out pro rata to such bondholders all sums which might thereafter be paid into the fund. The payment of moneys then in the fund was made. Since that time other moneys have accumulated in the bond redemption fund which the bondholders have demanded, and respondents herein again refusing to pay, petitioners, the bondholders, filed in the same proceeding in mandate last referred to, an affidavit charging respondents with contempt of this court in that they had refused to disburse said sums to bondholders as ordered. This court issued an order to respondents that they show cause why they be not declared in' contempt, and in response thereto respondents have made return as follows: They say there is now in the fund the sum of $13,750.72 and they do not contend that of that sum the amount of $4,724.04 is not properly payable to bondholders as being derived from sources to which they have lawful right to look for the payment of their bonds. But as to the balance of $9,026.68 they say the same is not properly available to meet the bondholders’ demands because derived from a resale to private purchasers of the lands bought by the state at the first sale for delinquent assessments. As to this money they argue that the bondholders have received the amount for which the lands were sold to the state, which moneys were provided through the mandated tax levy made pursuant to our order in McGrath v. County of Butte, supra-, that when these lands, not having been redeemed, were sold to private purchasers and the said sum of $9,026.68 received