Farmers & Mechanics National Bank v. Township of Franklin
Farmers & Mechanics National Bank v. Township of Franklin
Opinion of the Court
The opinion of the court was delivered by
This action is based upon six promissory notes made by the township of Franklin to the plaintiff, aggregating the sum of $4,564.11. The dates and amounts of these notes are respectively as follows: July 1st, 1907, $500; February ■4th, 1908, $500; June 1st, 1908, $700; February 1st, 1909, $1,364.11; June 7, 1909, $500; May 5th, 1910, $1,000. The case was tried without a jury, and the court sitting as a jury directed a verdict for the plaintiff for the entire amount of its claim. This action of the trial court is challenged on the piesent writ of error. ■
The plaintiff contends that the resolution of the township committee, providing for the borrowing of the money, did not state that the moneys were borrowed in anticipation of the collection of taxes for the then current year, and that therefore the township is not liable. In support of this conten
In the present case it is indisputable that the notes were given for moneys borrowed for township purposes and used for those purposes, principalty for the construction of roads and in anticipation of collecting the money. The delay in the payment of the notes was shown by the testimony of the plaintiff’s 'cashier to be the fault of the defendant. The cashier had demanded, each year, the payment oí the amounts due and was told it would be attended to as soon as the money was collected. Even if the right to incur the indebtedness were limited to one year, and tire debt must be paid out of the revenues for the year, the failure of the township officers to pay cannot discharge the debt. Ford v. Washington, 42 Vroom 49, 52.
"It will be presumed that 'the township committee acted properly unless there is evidence tending to show the illegality or impropriety of its action. There is no evidence of that kind in this case. On the contrary, everything appears to have been done in accordance with the law. The township ajopropriations were made in the years in which the moneys were borrowed. The township did not exceed its borrowing capacity.
The judgment should be affirmed.
For affirmance — The Chancellor, Chief Justice, Garrison, Swayze, Trenohard, Bergen, Voorhees, Min-turn, Kalisoh, Bogert, Yeedenbuegh, Congdon, White, Treacy, JJ. 14.
For reversal — None.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.