Before final judgment in any suit based on contract shall be rendered against any municipality by any court of any county in the State of Oklahoma, except in proceedings to refund any indebtedness of said municipality, proof shall be made to the Court, of the existence, character and amount of the outstanding legal indebtedness of said municipality, which proof shall include a statement compiled by the various officers having custody of the records from which the information required in the statement is taken, under oath, showing the following:
1. An itemized statement of the bonded indebtedness of said municipality.
2. An itemized statement of the legal indebtedness of said municipality, exclusive of the bonded indebtedness and the alleged indebtedness proposed to be converted into a judgment.
3. An itemized statement of the indebtedness proposed to be converted into a judgment, so classified as to show, in separate exhibits, all items of questionable legality, if any, and the reasons of said officer or officers therefor:
(a) The appropriations against which each warrant was drawn or claim accrued if in judgment, and if within the limits and purposes thereof as provided by law;
(b) The income and revenue provided for the respective years, consisting of taxes levied and the actual collections of “estimated income”; the total warrants issued against the same or the accumulated accruals as the case may be, and the amount, if any, in excess of the total income and revenue of the year;
(c) The condition of each fund from which such indebtedness is payable as of the close of the month next preceding the filing of application.
Appeals from the judgment of the court shall be allowed as provided by law upon the giving of a bond for cost and damages in such sum as the court shall require; provided, that the district attorney of any county may, without the consent of the board of county commissioners of said county, take an appeal from said judgment on behalf of said county and without bond for cost and damages.
Note: Title 12, O.S., §727, provides that judgments against school districts shall bear interest at a rate not to exceed 10 percent.
Statute that requires plaintiffs to prove political subdivision's ability to pay claim at issue so that subdivision does not exceed constitutional debt limitations does not specify any time frame for the scope or the presentation of that evidence, other than that it must be offered prior to final judgment. Plaintiffs must present proof of actual indebtedness for the fiscal year in which a judgment is entered before judgment can be rendered. Ahlschlager v. Lawton School District, 2010 OK 41.
Judgment for attorney fees entered against school district was invalid where trial court did not require the financial evidence required by this statute. Governmental Tort Claims Act has incorporated requirements of this statute prior to entry of final judgment when school district is self insured or not fully covered by liability insurance. Fields v. ISD No. 1 of Tulsa County, 2002 OK CIV APP 109, 84 P.3d 779.
A board of education that is self-insured for workers’ compensation must utilize the exclusive funding methods mandated in 85 O.S., §2b(A)(3) for such purposes. A board of education may not utilize the procedures of 85 O.S., §42 to fund its workers’ compensation coverage in lieu of appropriating funds because Section 42 is not a funding statute. Section 42 is intended to be used solely as a mechanism for collecting judgments. (AG Op. No. 90-9)
Title 62 O.S., §361 and 362 must be complied with to have valid judgment. Baylis v. City of Tulsa, 780 P.2d 686 (Okla. 1989)
No judgment shall be rendered against any municipality by any court until the provisions of Section 2 hereof, have been fully complied with. Any judgment rendered in violation of the provisions of this act shall be void and of no effect.
The provisions of this act, except Section 3, shall not apply to any claim which is less than Two Hundred Dollars ($200.00).
It is hereby provided that courts of record shall have exclusive jurisdiction in all actions for money judgment or for establishing any indebtedness against any county, city, town, board of education, school district or other municipal subdivisions of the State of Oklahoma.
Whenever a judgment against a county in this state or any other municipal subdivision thereof, becomes final, the clerk of the court wherein such judgment was rendered, shall provide without cost a certified copy of the journal entry of such judgment to the judgment creditor or attorney for the judgment creditor who shall transmit same to each of the following municipal officers:
The clerk or secretary of the municipality defendant,
The treasurer of such municipality,
The secretary of the county excise board.
Each of the three municipal officers named in Section 2 hereof shall maintain, on forms prescribed by the State Auditor and inspector, a record of such judgments and of levies made therefor and of payments made thereon. The record of the secretary of the county excise board shall be made to show, as to each such judgment also the case number and date of final decree of either the Oklahoma Court of Tax Review or of the Oklahoma Supreme Court invalidating any levy or part of levy attempted to be made therefor, and it shall be his duty to notify the court clerk, forthwith, of such decree, who shall make note of the same on his judgment roll.
If an attempted levy for any judgment has once been invalidated by final decree either by the Oklahoma Court of Tax Review, not appealed from, or of the Supreme Court, by reason of jurisdictional defeat, then such judgment shall not again be included in levy computation until revived by decree from the court of original jurisdiction; and provided further that, the owner and holder of such judgment is hereby authorized to defend such judgment levy before any court.
Money judgments against any county or other municipal subdivisions of the State of Oklahoma shall be paid in the following manner, and may be paid in no other manner. No payment shall be made until such judgment is first spread on the budget for levy as to the first third thereof, and the levy or provision made therefor has become final. Within thirty (30) days after the final determination of any ad valorem tax protests as involve levy for judgments against the county or any of its municipal subdivisions, or, if no protests be filed, then after termination of the 40 day protest period, the judgment creditor or attorney for the judgment creditor, shall file with the treasurer of such municipality a claim, in form as prescribed by the State Auditor and Inspector, itemizing the judgments to be paid, stating the principal sum thereof, any sums paid thereon, and the balance due with interest computed on the unpaid portion of the principal amount of each judgment. The information required by the claim form shall be supplied by the treasurer of the municipality or of the county, as the case may be. Such treasurer shall thereupon canvass his sinking fund for the purpose of ascertaining if there be in his sinking fund for such municipality an amount of actual cash over and above the amount of cash needed to pay all coupons and bonds matured and maturing therein within the time such sinking fund will be replenished from levies made or to be made for such judgment, or judgments, he shall approve such claim in such amount as is neither in excess of such claim nor in excess of the actual cash reserve necessary for coupons and bonds as herein before defined and shall transmit it to the clerk of such municipality. For all purposes of this act, the county clerk shall act for the county and all townships and dependent school districts therein. Upon receipt of such claim, the clerk shall audit the same against his own records and, if found correct he shall approve the same and return it to such treasurer, who shall pay the amount thereof out of such sinking fund, to the clerk of the court out of which such judgments issued. Upon receipt thereof such court clerk shall issue his official receipt and deposit said funds in his official depository account, and at the same time enter a credit in each case involved in accordance with the claim previously made or in ratio thereto; and thereafter, upon demand by the judgment creditor or his assignee of record, he shall make payment by his own official voucher in the same manner as in other cases and credit the judgment roll of such judgment with the amount of payment so made. No poundage or other fee shall be charged or collected by the court clerk for monies received or paid under the provisions of this act. If such claim can be only partly paid, under this section, other claims shall be filed from time to time thereafter, audited and paid in the same manner. No payment by the court clerk shall be authorized to be made to the assignee of any judgment unless such assignment, duly acknowledged, be first entered of record in such case and on such judgment roll.
Governmental entity cannot simply ignore a judgment against it, paying the judgment only at its discretion. There are proper mechanisms for pursuing a judgment against a government entity and judgment creditor is entitled to execute on judgment using those mechanisms. Bird Const. Co., Inc. v. Oklahoma City Housing Authority, OK CIV APP 12, 110 P.3d 560 2005
Statutory procedures are exclusive methods for school district to satisfy judgment, and general fund monies may not be used to satisfy judgment. December 11, 2000 (AG Op. No. 00-60)
When a board of education determines that the projects for which a bond issue was voted have been completed, the money remaining in the bond fund must be transferred to the sinking fund, which may be used to pay judgments against the school district if there is a compliance with statutory requirements. AG Op. March 8, 1967
If all, or more than one-third of a judgment be paid after the levy for the first third thereof becomes final, out of surplus cash as hereinbefore provided, levies to reimburse the sinking fund shall thereafter be made only if there be other outstanding indebtedness, in the same manner as if such prepayment had not been made, but levy for interest shall not be included on such prepaid portion other than for interest paid in excess of that already provided for by tax levy.
An appropriation must be made for the payment of judgments and interest thereon in the manner required by law, though the judgments have been purchased with funds from the sinking fund. Kansas City So. Ry. Co. v. Excise Board of Le Flore County, 33 P.2d 493 (Okla. 1934)
Where a judgment has been rendered against a school district in a district court, and appeal is perfected to the Supreme Court, no levy of taxes should be made to pay any part of such judgment until the appeal is disposed of in the Supreme Court. Jefferson County Excise Board v. Stanolind Pipe Line Co., 72 P.2d 805 (Okla. 1937)
The fact that a district court has by mandamus required an excise board to make a certain ad valorem tax levy to pay one-third of judgment against a school district does not affect the statutory right of a taxpayer to protect the levy before the court of Tax Review. Jefferson County Excise Board v. Stanolind Pipe Line Co. 72 P.2d 805 (Okla. 1937)