Untitled Texas Attorney General Opinion

OFFICE OF THE AITORNEY GENERAL OF TEXAS AUSTIN Mnorablk Wardlow Lane Di8trIot Attamey Center, Term mar Slrx 0pIn10nso. o-e ROI Whothor or nsolldatsd mttleb by allaeven thel3 rerignation and aeven more. Row than, 0r the aahool rum or the attornays who lefx C.uo sarranto suit ht agalnut then to oust them tram oo well established to require a oltation hat the preeent truetrae OS the oonaoll- 091 dlrtrlot In question hare no cower or authorlty.to ratliy or approro Illegal oontraots or pre- viour trusteea. Your Inquiry than Is narrowed to a deter- alnatlon of whether or not school ttusteee Icay legally es ploy attorney6 to defend thm in a 8uIt in the nature of a quo warrant0 brought to oust them rrom orrioe ror offi- olal mlsoonduot, 80 no to c’onstftute a oharge upm school runas 0r the dlstriot. Honorable Fardlow Lane, Tage 2 There are two well ostabllohed principles Of lax by whloh we must be guide'd. They are first that: “A quasi public corporation, such ns a sohool 6Istrlot, which ows speoial. duties to the pblla, may not enter into say contraot that Is'not expressly authorized by law or neoeasar- Ily implied rrom powers expressly granted." CcCorkel v. DistriOt Trustees, eto. (C.C.k.1838), 121 s. 7. (2A) 240. And seoond that: *A sahool district Is a quasi corporation or a public natMe, and the trustees of said district oannot lawfully expend money belong- ing thereto sxoept f.or the purposes authorized by statute." Adam '1. riles ( Corn. App.), 35 s. 8. (2d) 123. In dsoiding whether or not authority to so en- ploy attorneys exists the following artialea of the 2e- tlsed Civil Satutes of l.E25 (Vernon's Edition) must be oonsldered: "Artlole 2748. Said truetses shell bo a body polltlo and corporate In law, an4 shall be known by an4 under the title an4 name of dls- trlot trustees of dlstriot number -, an4 ooun- ty or , State of Texas; and as suoh may contra-d be oontraatsa lath, sue aEd be sued, plead or be Impleaded, In any court of this ltate of proper Jurisdiotion, an4 may receive any gift, grant, donation or devise made ror the use of the public schools ot the dietriot. All reports an4 other oifiolal papers shall be heade4 with the number of dlstrlot and name of county." .“Artiole Z749. Sal4 trustees shall have the managel;ant and control of the pub110 schools and pub110 school groun4s; an4 they shall de- termIne how many schools shall be molntained in their school dlstriot, an4 at rhat points they shall be looated; provided, that not more than one school for white children an4 one sahool fcr oolored children shnll be established for each sixteen square miles of territory of major fraction thereof, within ouch dlntriat; an4 they shall determine nhsn the schools Hhall bs opened Honorable i’;ardlow Lane, Fage 3 and when closed. They shall have the power to employ an4 4ismIss teaahers; but In ease or bls- missal, teachers shall have the right of appeal to the oounty and State Superintendents. They shall oontraot with teachers and manage and supervies the sohoola), subject to the rules an4 regulations or the oounty an4 State cuperfnten- dents; they shall approve all claims agalnat sohool funds ot their Ulstriot; provided, that the trustees, In making contracts wlth teaohere, shall not oreats a derlclenoy debt against the dlstrlot .* *Artlole 2827. ‘,.‘l. The State an4 county ava-llable funds shall be use4 exoluslvely for the payxant ot teachers’ and auperlntenQents~ salaries, fees for taking the scholastic cen- sus, and Interest on money borrow8 on short time to pay ,salarles OS teachers an4 superin- tendentb, when these salaries beoone due be- rorejthe school funds ror the current yoar be- come arullable; provided that no loans for the purpose or payment or teachexs shall be paid out of funds other than those for the then cur- rent year. “2. Looal school funds iron district taxes, tuition rees or pupils not entitled to free WI- tion an4 other looal sources may be use4 ror the purposes enumerate4 for state and county runds an4 for purchasing appliances and SUppliSS, for the paynent of Insuranae pre’cmlums, janitors and other employee, ror buying school sites, buy- ing, building an4 repairing and renting school houses, an4 ior other purposes necessary In the conduot ot the public eohools to be detertine by the Board or Trustees, the acoounts an4 vouoh- era Xqr oountg dIetrIots to be approved by the aounty superintendent; provided, that vlhen the State available sohool fund In ‘any oity or dim- trlat Is aurriclent to maintain the sohools thereor in any year for at least eight nonthe, and leave a eurplus, suoh surplus may be expend- ed for the purposes mentioned herein. I . . .* It Is quite apparent that the Leglsleture has given no express authority to ooneolldated dormon school dietriot trustees to empfoy oounael to represent then; an4 Eonornble Zsrdlow Lane, r4,s.e 4 provido for their payment with sohocl funds in litigation ot any neture, end Artiale 2827 has ciroumrrorlbed their euthorlty to spend aohool tunde. Is the power neoesaarlly laplied iron porers which era erpr44sly grentad? As 8tet6d in 37 Tax. Jurla et pegs 9451 *Evan in the ebsaaoe or power axpraesly con- ferred, trustees may employ attorncrjs to instltuta and poeeoute action4 in their behalf a4 u neo- 4asary lnoidsnt 0s thblr power4 to contraot, to aue and wmage and control the sohool erfalra and lntereote. Likarlae they mey pay such ettor- neye rsaaonebla compsnsat.$on out of the speolal maintenanoo fund in the maq~agamsnt end oontrol 0r the truatma.- An sxam~l4 0r this rula is the case ot Arrlngton v.'Jonar (c. c. A.) 191 S. w. 361, on4 or many or it4 kind holding that sohool trust.eee may 4mpl6y 4n attorney *to r4prea4nt them Jn legal proo44dlng4 respecting sohool ai- iairs.* Sea al40 Rarding et al v. R4ymondvllls Independent school Dlrtrlot~(C.C.A. 1932). 51 s. K. .(2Q) 826; Stewart T. Xowton Icdependent Sohool District (Civ. App. 1939), 134 S. WA’. (2d) 429. The r4preasntatlon in such iastanoeq, how- ever ia or the 4chool trusteee as 4 body oorporata, 4nd in no iretanoo havo we found duthorlty for tha proposition that rohool funds may be ussd to pay attorney's rees lnourred in a personal suit egainst the truotees ta oust them Imu offios. Indaed, the rule allowing the school truetsea to employ attorceya aad oompeasets them out or the pub110 school rood4 14 limited to nettsra involving aohool aftalrs wherein the lnter4ste of the sahool er4 involved. D4nm4n v. Kebatsr, 139 Cal. 462, 73 Pac. 139; hyrne v. covington 5oerd or Eduoa- tloa, 140 Ky. 531, 131 S. 'i;. 260; Tercplin v. Fremont Diatrlot, 36 Iowa 411; Cklahome City Board or Educetlon v. Thorman, 121 'Okle. 108, 247 reo. 996; Z&oKinnonv. State, 70 Fla. 561, 70 So. 567, Kelksr et al v. Yalter et al (C.C.A. 1922], 241 5. ::. S24; Craves B. Hotichsne v. Diamond Kill Indl rohool Cietriot (C.C.A. 1922), 243 '. iv. 638. Aa stated in Vol. 24 or Ruling Case Iax at page 6971 Yha question has rrequently arlaen as to the QlVQriOtp of the nxpQndltur4 or aohool funds in counsel rees. Sroadly apsaklng a sohool dis- triot havlng the power to sue and be sued mny HOnOral: Kardlovr L.808, pa&4 5 employ an attorney lr the 4mQloyluent I4 neoes- eery for the proteotion of the QUbliO intersets 00tdtt4a to it. The power to employ inoluae4 the Fow4r to co%pepsEse$e, But the power to em- ploy counsel exist.8 only where e publio inter8st is oonoerned whloh the board Is oharged~by law with the duty to proteot, and of oourse echo01 funds cannot bo used to pay ooeta or counsel reaa In eotlons brought osteoslbly In relation thereto, but in reality for the benefit of prl- tate persons. The questlon Usually arlaes end ir mm aitriouit to detersins where etatutes exlat providing that 401a4 legal ofiloial shall act as counsel ror the board. Ii th4 statute requirea such officer toMappear for the dlatrlct, it oaanot crmploy anotlxr 9n hi8 plaoe, ii he 1s able end rllllng to act, though it mey, ln a proper ctse, employ an assistant oounsel; end a statute perizlttlng tho enploya8nt of sQeoIa1 counsel uhen reoeesery 1s constitutional. These deolsions &Spend lhrgely on the local 8tatut84, =d are i equently or little ralus a4 authorit:, bspond th a particular jurlndiotlo~. ::hera a school distrlot 1s expressly authorized to em- ploy counsal ror certain purposes its authority wl&l be M.&ted stxlotly to the powers granted.* In Zerrtlon v. Webster, 4UQr4, it wu4 held that ths power of the school board to ezqloy oounsal axlets only where a public interest is oonosrrmd which the board Is charged by law with the duty to proteot, end that the school board had no authority to amploy counsel la en electloo con- test to detcrmlae xho were the de jure members or the eohool board. In Dyrne and Read v. Boer4 or gduoatlon or the City 0r Covington, supra, the queetion was 4s to the right 0r 41x mamb8ra 0r the board of education or Corington to uploy en attorney to sue to oompel the other SIX members to meet with the~fomr, so es to proceed with the business ber0re the board. The oourt held that an attorney could not be smployed ior suoh purpoees and said: *The board of eduoetion is a body corporate. It is en agctncy 0r ~orernczant. Its oeixolty to oontreot la olroumsorlbed. It oen oontreot only in bahalr of the oonxon school lntereeta of the olty in any event. It was not cornpotent for It to hers contracted to pay ths counsel lees ln- ourred by Ita individual n;embers In a roatter wholly amonq tber;selves. If the ease had been Honortile Qrdlon Lane, rage 6 a contest between two of the llti(pats as to whioh via8 entitled to the office of ffieizber of the.board, it would in a sense hove involved a ratter affecting the schools of the city. So ?loss. the actlon ia question. But it affeots the uohool interests only a8 an lnoldent. The aotioa was Fersonal as to its parties. Any cit- ‘izen and patron of the School tight as well have maintained It. But the test of the lla- blllty of the board of eduoatlon on the con- tract Is not whether the pukUc body was bene- fited by It. It Is never allowed that the state, or any of Its constituent ems of eov- erncsnt , though oxpresslyz pemltted to make oontracts and be sued upon them, cay beoome liable on Implied asorucpslt. 1,ublio oorpor- ate bodies mat not only act in a Latter wlth- in their jurisdlctlsn, but 13 the manner ex- pressly authotlzed .by lan, or they cannot bind the pub110 as for debt. Co tho board of educa- tion alone could contraot a debt agall?st It- self as a .$ubllo corporation.. Belther a Elaor- Ity,of the board aoting together, or whatsoever nuu.bar acting Independently and pemsonally, oauld Lo. so. Nor, In such Inatanoes, does the question of benefit or advantage derived by the public atfeot the question Of the Fub- llc*e liability. It mst be reh,sc;bcred that the public In Its quality of sovereign is never liable at all as for debt, unless It expressly pcrffilts. And when It psralts such liability It cust contract, not only for 'We ffiatter, but only In the manner expressly authorized." (Underscoring oura) The case of %ith v. i‘lttsburRh 'chool l'lstrlct, 70 Fa. zuper. 184, Is dlreotly in point. lr: that case the sohool board etipLoyed attorneys to represent thelr in an Ration instituted to restrain then from rapreaenting the sahool in certain scatters since an aot of t.he I,aglslaturo (which the defendonta alleged to be unconstltutlonal) ter- ,Einated their offlces durinq the year. Flalntiffs in the .preSent OaSe Wore thCir attOrney5 in the F~x!v~ou~ action whloh they lost; and the present action was Instituted to Moover attorneysr tees. The court said: "The holder of an office has an undisputed right to contest the validity of leglSlation which ousts hlni. That is personal to h11~1elf. The ~1111 of the pUbli0 is voiced by tho legiels- ture, and he who raises the oontest. a~‘.??u;i:eSthe i-;onore+le riardlow Lane, Pnea 7 burden of c5tablishing his right, and tho bur- den of ooeta. axwnses. etc.. are lncldent to that contest; Zia has no vesied rlrbt to an of- floe created by the loglslature, ana lndependent- ‘Iy of the legislatdve ~111, the public has uo Interoat in continuing these p3rtioular persons UC directors of thls sub-school dlatrlot. * . . . “The old board of Qlreotors of the aub- 5obnol dlstriot bud no power to make these de- fendants liable for profaasIonal aervlces In suoh a contest, The dlreotors viere axarclslng powers delegated to them by Saw, and only In the exerolse or suoh parers, aotlng exolu5lve- ly in their oftlola oapaoltle8 as the Immed- late representatlvea of the pub110 and purely and In behalf, could they b&id the public. . . .I (UnderscorIng ours) Ye bellbve that this 15 the lan In ~cxas and opiniona of prcvloua adnilnI5tratIon5 of t.his departiient are In aocord with this view. See O&i’iOll dated Ootober 11, 1937, to Eonorable A. A. b’lller, County Attorney, New- ton Couaty. In xalker et al v. Xalter at al, (C .C.A. 1922) 241 3. 2. 924, a cult was filed to remove certain trustees of an irdepsndcnt sohool district rrom oflice, plalntlff alla&g various aots of offlola mIsoonduot asd lnoom- petenoy. The petition also prayed for a taxqorary In$uho- tlon enjoining defendants irom spending any lnoney or funds belonging to the school dietriot to defend the cause. The Court of Civil Ap;.eals although reforming In part the judgment below continued the temporary Injunction to pro- Nblt the paying out of sohool funds for any oi the erpen5e5 of lItlgatIon. For a case slmllar In principle restraining com- mom school dlstrlot trusteee from Spending publie funds which expenditures would beaaflt the trustees personally, 8ee Barton Y. Vlokery, (C. C. A. 1916) 189 .‘. ‘::. 1103. The case of Craves (G W>utohens v. Clanond El11 Ind. !?chool Clstrlot, (C. C. A. 1922) 243 ‘:. 7'. 630, ln- valved the appl.IoatIon of prlnolplea of law elnllar to those Involved In the Lnatant ease. In that cane the t~rusteea of the independent sohool dlstrlot had entered Into a contract with a firm of attorneys for the purpose of having then de- feat oartaln bllla pending In the &!glaleture. The court Honorable "ardlow Lane, page 8 held that the coqtraot was ultra vires, opposed to pub110 ~~~lloy and void. In the course of the opinion Chief Justice Conner stated the rule as follows: While It is doubtless true that there is p&er in a board of trusteea of an independent. sohool dlat+zt to mploy counsel-and pay out or the publia funds or, the dletrlot a reason- able ree in oases where the interests of the diatriO,t require aaaertlOn or derenae 113 the toour 8 0 orltp, after oaretul search, either expressed or implied in the statutes or this ataie to .anploy counsel and expend tte pub110 funds o'r'the diatrlot ln the attempt to aeoure or dereat leglalatlon." (Underaoorlng ours) Consequently, it is the opinion of tkls depart- ment and YOU ar8 respeatrully adrlaed that sohool funds or the oonsolldatqd common school district in question my not be used to pay attorney's tees incurred by certain neffibers ot a pretiou8 board of trustees in the defense ot a quo mrranta suit brought agatnat them. Yours rsry truly ATTORN CEXCRAL Or TFmS JDS:LE