Smith v. Boise City, Idaho

This is an appeal from a decree rendered by the United States District Court in a suit in equity for an accounting, brought by certain owners of improvement district bonds on behalf of themselves and others similarly situated, against Boise City, Idaho, and its treasurer. Recovery was allowed the plaintiffs in the sum of $6,846.-17, to be prorated over all outstanding bonds of the district. Plaintiffs are prosecuting this appeal, contending that they are entitled to judgment for the full amount of the bond issue, less amounts paid by the district on account of principal and interest, because of the alleged failure of Boise City to sustain the burden of proof that it had discharged its duties as trustee, and for other reasons hereinafter discussed.

Appellants are the owners of $27,500 par value of bonds, dated January, 1922, issued for improvements in Local Sidewalk and Curb Improvement District No. 38 of Boise City, under the authority of section 49-2701 et seq., of the Idaho Code. There are $37,000 par value of said bonds outstanding. The complaint alleged, inter alia, the issuance of the bonds, the ownership thereof, and the presentation of the same to Boise City for payment…