Opinion ID: 1954603
Heading Depth: 1
Heading Rank: 7

Heading: Taxpayer Status

Text: However, the local claims that it nonetheless has standing to bring this action by reason of its status as a resident taxpayer. We have long recognized that a taxpayer, for the benefit of a municipal or public corporation, may commence and prosecute to judgment an equitable action to enforce a right of action which the governing body has refused to enforce. Nebraska Sch. Dist. No. 148 v. Lincoln Airport Auth., 220 Neb. 504, 371 N.W.2d 258 (1985), citing Shepard v. Easterling, 61 Neb. 882, 86 N.W. 941 (1901), overruled on other grounds, Wilson v. Otoe County, 71 Neb. 435, 98 N.W. 1050 (1904). There is an exception to the general interest prohibition where a resident taxpayer (who has a general interest with other taxpayers) sues to enjoin an illegal act by a municipal body. Nebraska Sch. Dist. No. 148 v. Lincoln Airport Auth., 220 Neb. at 507, 371 N.W.2d at 261. A resident taxpayer may invoke the interposition of a court of equity to prevent the illegal disposition of money of a municipal corporation or the illegal creation of a debt which he or she, in common with other property holders, may otherwise be compelled to pay. Nebraska Sch. Dist. No. 148 v. Lincoln Airport Auth., supra ; Martin v. City of Lincoln, 155 Neb. 845, 53 N.W.2d 923 (1952). Moreover, a resident taxpayer, without showing any interest or injury peculiar to itself, may bring an action to enjoin the illegal expenditure of public funds raised for governmental purposes. Id. See Hall v. Cox Cable of Omaha, Inc., 212 Neb. 887, 327 N.W.2d 595 (1982). To plead a resident taxpayer's action the plaintiff must allege a demand made upon the municipal or public corporation and a refusal by the corporation to bring the action itself, or facts which show that such a demand would be useless. Nebraska Sch. Dist. No. 148 v. Lincoln Airport Auth., 220 Neb. at 508, 371 N.W.2d at 261-62, citing Sesemann v. Howell, 195 Neb. 798, 241 N.W.2d 119 (1976). The record establishes that the local is a resident taxpayer of the city, that the city removed a fire engine from the airport and allocated $400,000 for the construction of a new firehouse, and that the local made a demand upon the city to provide specialized firefighting services to the authority. These circumstances, coupled with the local's claim that the $400,000 allocation was made necessary because of the city's illegal failure to fulfill its firefighting duty, give the local standing to maintain this action as a resident taxpayer.