127 P. 1004 | Mont. | 1912
delivered the opinion of the court.
The city council of the city of Great Falls, having determined that it was of public concern that a portion of one of its streets, designated as First avenue north, be paved, caused the city engineer to prepare plans and specifications for the proposed improvement, and also an estimate of its cost. This he did. The property abutting on the portion of the street to be paved is described as “embracing each and every lot in the south half of blocks 307, 308, 309, 310, and 311, and in the north half of blocks 312, 313, 314, and 315.” These include all lots fronting on the avenue from the west line of Park Drive to the east line of Sixth street. Lots 8 to 14, inclusive, in block 310, belong to the United States, being occupied by the federal building. The engineer’s specifications contained this paragraph: “Attention of all contractors is called to the agreement of Warren Brothers Company, filed with this city, in accordance with which agreement Warren Brothers Company agrees to license all contractors desiring to bid for the work to lay the bitulithic pavement in accordance with its patent and terms of said agreement.” The following is a copy of this agreement:
“Boston, July 6, 1911.
“To the Honorable Mayor and City Council of Great Falls, Montana—
“Gentlemen: Inasmuch as it is deemed advisable by the proper authorities that bids be received for the improvement of certain*300 streets in the city of Great Falls, state of Montana, with the bitulithic pavement; and inasmuch as the construction of said pavement requires the use of certain patented processes and compounds; and inasmuch as competitive bidding in the letting of contracts for street improvements is deemed advisable, in order to provide for such competitive bidding and at the same time secure the adoption of the bitulithic pavement as the kind of pavement to be constructed in such streets as may hereafter be determined, the undersigned Warren Brothers Company, as owners of all patents and processes covering the laying of said bitulithic pavement, hereby proposes and agrees for the consideration hereinafter named, to furnish to the city of' Great Falls, or to any bidder to whom a contract may be awarded to pave any street or streets in the city of Great Falls with bitulithic pavement at any time within one year after this date or at any time thereafter until this proposition is formally withdrawn, and who shall enter into a contract with such surety or sureties as may be required by-said city of Great Falls, the following material ready for use coupled with a free license to use any or all patents, trademarks, or trade names now owned or which may hereafter be owned by Warren Brothers Company necessary to lay said pavement:
“ (1) The necessary roadway mixture for the wearing surface having a thickness of two (2),inches after compression, prepared under the patent processes of Warren Brothers Company, and delivered hot in the wagons of the city or contractor at the bitulithic mixing plant, located in the city of Great Falls, said plant to be located within three (3) miles of the work .to be performed.
“(2) The right to use any and all patents, trademarks and trade names now owned or which may hereafter be owned or controlled by Warren Brothers Company, which are necessary to be used in the laying of such pavement.
“ (3) The bituminous flues coating cement, necessary for coating the wearing surfaces, delivered on wagons of the city or contractor at the bitulithic mixing plant, located as above.*301 “ (4) An expert who will give proper advice as to the building of such pavement will be furnished to the city or contractor, at the expense of Warren Brothers Company.
“(5) Two daily examinations of the mixture as delivered on the street will be made at the laboratory of Warren Brothers Company to determine if uniformity has been accomplished in the mixture and construction, and reports thereof will be made to the proper city authorities; said samples to be sent prepaid to the laboratory of Warren Brothers Company, Water street, East Cambridge, Mass., by the city or contractor.
“The price at which this service is offered to any and all contractors who made a bid on the bitulithie pavement in the city of Great Falls, state of Montana, is one and 50/100 dollars ($1.50) per square yard of finished pavement, at which price it is also agreed to furnish the mixture for making all repairs, if any, which may be necessary for the wearing surface, during the life of said patents, f. o. b. Great Falls, in barrels for reheating.
“The accepting of the bids by your city, and the letting of a contract for the same, is all that shall be necessary to bind Warren Brothers Company to this agreement.
“The above agreement made with the understanding that it applies only to contracts, work on which can be performed continuously, aggregating not less than ten thousand (10,000) square yards.”
The specifications included an estimate of the cost of the entire improvement in. case bitulithie pavement should be used, fixed at $40,000. Of this amount, $26,200 was apportioned to the abutting property, making the amounts assessable to each lot, excluding those belonging to the United States, $420. The remainder was charged to the city. Prior to any definite action by the council, a majority of the persons owning lots abutting on the portion of the avenue to be improved had by address to the council recommended that it require the use of bitulithie pavement. On September 16, 1912, the council passed a resolution for the pavement of the designated portion of the avenue, declaring that it was its intention to cause it to be paved, if on or before September 23 objection in writing should not be made- by
“Notice is hereby given that the undersigned at his office in the courthouse, Great Falls, Montana, will receive sealed proposals until 8 o’clock p. m., September 30, 1912, for the furnishing of all labor, tools, materials, and appliances for the construction of a bitulithic pavement on a concrete base, together with all necessary sewerage and grading, as shown on the plans*303 filed in the office of the city engineer on First avenue north from the west line of Park Drive to the east line of Sixth street. The city council reserves the right to reject any or all bids or to waive defects and accept any bid.
“W. H. Harrison, City Clerk.”
The plaintiff, a resident of the city, is the owner of property abutting upon First avenue and subject to assessment for its proportionate share of the cost of the improvement. He is also the owner of a large amount of other property in the city upon which he pays taxes. On September 23 he filed with the city clerk his written protest and objection to the improvement. What, if any, action was taken with reference to it does not appear. Thereupon he brought this action for an injunction to restrain the defendant and its council from letting a contract to anyone to have the contemplated work done, on the grounds (1) that the city council is without jurisdiction to order the improvement, because ordinance 362 and the resolution passed in pursuance thereof are void in that the ordinance does not provide a system for doing the work of improvement, as is required by section 3369, Revised Codes, and because it imposes upon the city the obligation to pay the cost of the improvement in front of the property belonging to the United States; and (2) that the resolution is also void because it requires all bidders to use the processes and compounds covered by the patent of the Warren Bros. Company, and hence does not permit competition as is required by section 3278, Revised Codes. The cause is before this court on appeal by the plaintiff from an order of the district court refusing the injunction.
Among the general powers conferred upon a municipality are the following: “To lay out, establish, open, alter, widen, extend, grade, pave, or otherwise improve streets, alleys, avenues, sidewalks, parks and public grounds, and vacate the same.” (Rev. Codes, sec. 3259, subsec. 6.) “To create special improvement districts, designating the same by number; to extend the time for payment of assessments levied upon such districts for the improvements thereon for a period not exceeding three years; to make such assessments payable in installments and to pay all
In view of the general powers conferred upon the council by the foregoing provisions, in the absence of any other provisions as to the method of procedure and the payment of expenses, on the principle that the grant of a power to do a particular thing implies also all the incidental powers necessary to carry it into effect, the council would have authority to order any necessary improvements and meet the expense of them by appropriations from any .fund in its treasury available for that purpose and not otherwise appropriated. In ordering the improvement in question, the council adopted the course prescribed by sections 3369, 3370, and 3386. Section 3369 provides: “The city or town council, is authorized to provide by ordinance a system for doing any or all work, -in or upon the streets, highways or public places of the city or town, and for making thereon street improvements and repairs, and for doing any or all work authorized by this Act, and for the payment of the cost and ex
The procedure pursued by the council with reference to the improvement in question appears to have been in strict conformity with these provisions, and it acquired jurisdiction to proceed unless it is incumbent upon every city or town council, before ordering any special improvement, “to provide by ordinance a system for doing any of all work upon the streets, highways, etc., * * * and for the payment of the cost and expenses thereof.” It will be noted that the council is not here required in terms to enact such an ordinance, but is merely authorized to do so. The council is the governing body of the municipality. It is given the exclusive control of streets and highways. (Snook v. City of Anaconda, 26 Mont. 128, 66 Pac.
This brings us to the question presented by the second contention made by council for the plaintiff, viz., that the proceedings of the council are void because, by its resolution and its notice calling for bids, it has specifically required the use of bitulithie
It may be remarked, in the first place, that the address presented to the council by a majority of the owners of abutting lots cannot be considered as aiding the proposed action of the council. There is no provision anywhere, in the legislation touching municipalities, permitting property owners to control the action of the council by petition or address when engaged in the letting of contracts for any purpose. The power to let is lodged exclusively in the council, under the limitations prescribed by the statute. If the statute granting the power also prescribes the procedure which must be pursued, this procedure is the exclusive guide. The question of good or bad faith or of sound discretion on the part of the council does not affect the result. The question always is, What does the statute say shall be done, and has the council done it? The provision requiring competitive bidding is designed to prevent favoritism and to secure to the public the best possible return for the expenditure of the funds which the property owners are required to furnish, through the payment of taxes and assessments. But the benefits to be anticipated from the letting of contracts by this mode will vary according to circumstances. The article or material desired may be of such a character that the competitors will or may be numerous. In other eases the persons who can compete will be few because the article or material is of such a character, or the source of supply so limited, that only a few persons can furnish it. It may happen that there can be but one or two bidders. The principle of competition would nevertheless still be retained, and a contract let under these circumstances would not necessarily be objectionable on the ground of illegality. The security of the public against favoritism and extravagance would still rest in the power of the council to reject all bids. It may happen in a given case, as here, that because the necessary article is patented, or because the source of supply is in the control of a single person, there can be no competition as to it. One who has a patented invention has the exclusive right to make and sell it. He can fix the price at which it must be sold
In the pioneer case of Hobart v. City of Detroit, 17 Mich. 246, 97 Am. Dec. 185, the question arose as to the power of the common council of the city of Detroit to let a contract for the laying of the Nicholson pavement. The patent was controlled exclusively by a single firm who alone bid for the contract. It was argued by complainant that, since there could be but a single bidder, public competition was excluded, and hence that the contract was void. The court held, however, that the statute did not prevent the city from contracting for the Nicholson pavement, although in fact the only bidder was the patentee. In the course of the opinion, Mr. Chief Justice Cooley said: “The statute has fixed a rule from which great benefit will be derived in many cases, and some benefit in most cases; and it has declared, in effect, that contracts shall be valid which com
The case of Saunders v. City of Iowa City, 134 Iowa, 132, 9 L. R. A., n. s., 392, 111 N. W. 529, is directly in point. The Warren Bros. Company, as here, had filed an agreement with the city binding itself to furnish its patent to all bidders. The court held that, though the council in its resolution ordering the improvement and in its advertisement for bids.required the use of bitulithic pavement, it did not violate the statute relating to competitive bidding. In the course of the opinion the court said: “All that the law means, as we view it, is that, in all cases where competition may exist, such competition shall
The leading ease laying down the contrary rule is Lean v. Charlton, 23 Wis. 590, 99 Am. Dee. 205. But the Wisconsin court in the later case of Kilvington v. Superior, 83 Wis. 222, 18 L. R. A. 45, 53 N. W. 487, found it necessary to recede somewhat from the rule as broadly stated in Lean v. Charlton. In that case it was held that a contract let for the construction of a cremating furnace, the mode for building which was patented, was not invalid where the letting of the contract for the labor of construction and the materials was to the lowest responsible bidder; the owner of the patent having agreed to allow the use of the patented mode at a specified price by anyone bidding for the contract. In the course of the opinion by Mr. Justice Pinney, we find this comment upon Lean v. Charlton: “In view of the legislation which followed Lean v. Charlton (an Act validating the assessment), and the fact that it was decided by a divided court, and the general trend of subsequent decision, and the further fact that patented methods and processes now enter so largely into various classes and kinds of public work, we are not disposed to extend the rule of that case beyond the point there decided.” A collection of cases sustaining the divergent rules announced in Hobart v. City of Letroit and Lean v. Charlton may be found in the notes to Kilvington v. Superior, as reported in 18 L. R. A. 45, and Allen v. Milwaukee, 5 L. R. A., n. s., 680. Some of the courts recognize a distinction between cases in which the city authorities purpose to pay for the contemplated improvement by general taxation, and those in which payment is to be made by means of special assessments. We shall not stop to compare them or undertake to find a reason for the distinction, if there is any. Our statute requires
The order of the district court is correct, and is affirmed.
Affirmed.