Washington v. Maricopa County

Appellants are holders of highway improvement bonds issued by Maricopa County, Ariz., in the years 1919 and 1921. Incorporated in the bonds are specific due dates. Some of the bonds have matured, others have not. On demand of Maricopa County the Loan Commissioners of the state instituted proceedings to refund the unretired portions of the two issues on the view that the bonds were legally subject to call and refunding whenever such operation is to the profit of the state.

. Appellants sued in the district court asking that it be adjudged that the right to call the bonds prior to maturity did not exist when they were issued, and that the county is accordingly obligated to pay interest at the agreed rate until maturity. *558 The claim is, primarily, that the refunding was had under authority of statutes first enacted in 1928 as part of a revision of the laws undertaken in that year. The findings and judgment below were to the contrary.

The call and refunding proceedings have been upheld by the Arizona Supreme Court in two cases, Maricopa County v. Osborn, 59 Ariz. 244 , 125 P.2d 703 , and Id., 60 Ariz. 290 , 136 P.2d 270 . These were mandamus suits to compel the Loan…