Hayward v. City of Corpus Christi

HALE, Justice.

This suit involves $2,626,000 of outstanding water revenue bonds issued by a municipality for the purpose of expanding and improving its water works system. The bonds were not submitted to a popular vote for approval. The trial court held in effect that the bonds were invalid because their issuance had not been legally authorized but that the municipality was liable in equity to the bondholders for the reasonable value of the properties it had acquired through the issuance thereof, together with the reasonable rental value of such properties, less certain credits and deductions.…