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Attorney General v The Corporation of Lichfield

Nominate Series English Reports Cited authorities 5 Cited in 4 Precedent Map Related
Vincent
JurisdictionEngland & Wales
Judgment Date01 January 1848
Date01 January 1848
CourtHigh Court of Chancery

English Reports Citation: 50 E.R. 762

ROLLS COURT

The Attorney-General
and
The Corporation of Lichfield

S. C. 17 L. J. Ch. 472.

[120] the attorney-general v. the corporation of lichfield. ' May 2, 3, 4, June 27, 1848. [S. C. 17 L. J. Ch. 472.] The Borough Fund created under the Municipal Corporation Act (5 & 6 Will. 4, c. 76) is a trust fund, and this Court has authority and jurisdiction to compel the parties who receive and apply the fund to account for the sums they receive, and the application of them. Upon a true construction of the Municipal Corporation Act, it is the duty of corporations to provide, as far as they can, within the year, for the expenses of the year, by securing, by means of a rate, if other lawful means are insufficient, such an income, as, upon a proper estimate, may be found necessary, and they ought not to contract debts to be paid in future years, for the purpose of avoiding, in the current year, to provide for the expenses then incurred. But, on the other hand, it is not clear, that the Act ought to be so strictly construed, as to lead to the conclusion, that an expense not included in a prior estimate, and so incurred as to constitute, what may be justly called a debt, before a subsequent estimate or rate is made, can in no case whatever be lawfully provided for by such subsequent estimate or rate. In a case requiring its exercise, the Court may have jurisdiction to restrain the Corporation from making any new or additional borough rate, for the purpose of paying thereout any expenses incurred previously to making the same. The Court has jurisdiction, if it be expedient and the case required it, to restrain the application of money collected by rates for costs, debts, and expenses incurred prior to making the rate. A motion against a municipal corporation and its officers for an injunction to prevent: 1. The application by them of the money already collected by a borough rate for costs, debts, or expenses incurred prior to the making of the rate; 2. From taking any steps to enforce payment of sums not yet received under the rate; and 3. I1BBAV.11L ATTORNEY-GENERAL V. CORPORATION OF LICHFIELD 763 From making any new or additional rate for the purposes of paying thereout any expenses incurred: prior to the making of the rate, refused under the circumstances. This case came before the Court upon an application for an injunction under the following circumstances:- At the municipal election at Lichfield, in November 1843, a considerable change took place in the preponderance of the two parties existing within that borough. In January 1844 Simpson, who, for eighteen years had acted as town clerk, was removed; and, the town council having refused to make him any compensation, he obtained a mandamus from the Court of Queen's Bench, commanding the Corporation to assess and grant him a compensation. The return to the raM-[121]-damws was traversed, and, issue being joined, a verdict was, in 1846, given for the Crown. In December 1846 Simpson's costs were taxed at £467, and, he having threatened to issue execution against the individual members of the Corporation who had made the return, the amount was paid him out of monies borrowed for that purpose, which remained unpaid. The costs of Eggington, the new town clerk, who acted as solicitor for the Corporation in these proceedings, were considerable, and were not paid at the time. Besides these debts, the Corporation was indebted in other monies, and in particular for eleven years' arrears of an annual sum of £40, payable by the Corporation to the Commissioners acting under a Street Act. They were also indebted to the trustees of several municipal charities in £490, and an arrear of interest thereon incurred since the passing of the Municipal Corporation Act. As to this sum, upon a reference to one of the Masters of this Court, he had, in February 1847, reported, that it ought not to remain in the hands of the Corporation, unless they gave a bond, and paid up the arrears of interest. These being the liabilities, it appeared that the Corporation had real property producing a considerable income. The first borough rate of £830 was made on the 31st of January 1846, and, on the 19th of July 1847, the Corporation being indebted as before stated, the town council made an order for raising a sum of £2121 by a rate. The terms of the order will be found stated [122] post. (Page 128.) A considerable portion was raised, and carried to the Borough Fund, without being distinguished from the other parts of it; and, out of the Borough Fund, a sum of £500 was, in February 1848, paid to Eggington, on account of his costs of the proceedings at law, and payments had also been made thereout to the Commissioners of the Street Act, in respect of the old debt, and to the trustees of the charities, and, as was said, in payment of other debts and expenses due prior to the rate being made. Other parts of the rate remained unpaid. The overseers of one of the parishes in the City of Lichfield appealed from the rate to the recorder of the city, who stated, that he had no jurisdiction to enter into the question, as to whether the rate was intended to be retrospective or not, and he confirmed the rate. This information, after stating the 6th, 75th, 92d, 93d, and 142d sections of the Municipal Corporation Act (5 & 6 Will. 4, c. 76), and the Street Act (46 G. 3, c...

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