City of McDonough v. Campbell
289 Ga. 216
Ga.2011Background
- Georgia Supreme Court case determining whether a city employment contract binds successor councils under OCGA § 36-30-3(a).
- In Aug 2005, City of McDonough adopted contracts with employees, including Campbell, providing automatic renewal and a severance package if terminated; termination required a vote by Oct 30 in the year of termination.
- January 2006, new mayor and council took office; five months later the city declared the contracts null and void.
- Campbell demanded severance; after trial the jury verdict favored Campbell; Court of Appeals affirmed, holding no violation of § 36-30-3(a).
- Supreme Court reversed, holding the contract unlawfully binds future councils and is ultra vires.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contract binds successor councils under OCGA § 36-30-3(a). | Campbell argues the contract binds successors. | City argues no violation under § 36-30-3(a). | Contract violates § 36-30-3(a). |
| Whether the charter authorization exception applies to validate the contract. | Charter expressly authorizes employment contracts; exception should apply. | Charter does not expressly authorize renewable contracts with long severance. | Charter exception does not authorize the contract. |
| Whether the contract is ultra vires due to being an unreasonable, long-term financial obligation. | Contract is ultra vires and void because of automatic renewal and year-long severance. |
Key Cases Cited
- Ledbetter Bros. v. Floyd County, 237 Ga. 22 (1976) (limits on long-term government obligations; taxation/appropriations relevance)
- Brown v. City of East Point, 246 Ga. 144 (1980) (governmental vs. proprietary functions; long-term commitments)
- Horkan v. City of Moultrie, 136 Ga. 561 (1911) (public policy balancing future legislative freedom and obligations)
- Screws v. City of Atlanta, 189 Ga. 839 (1940) (ultra vires for contracts impinging on legislative powers)
- Jonesboro Area Athletic Assn. v. Dickson, 227 Ga. 513 (1971) (distinguishes governmental vs. proprietary contracting; financial obligations considered)
- Precise v. City of Rossville, 261 Ga. 210 (1991) (limits on contract authority not expressly granted by charter)
- Williams v. City Council of West Point, 68 Ga. 816 (1882) (recognition of charter-based contract authority within bounds)