12 Mich. 279 | Mich. | 1864
This case comes up for the review of a judgment, rendered by the Wayne Circuit Court, upon an agreed state ment of facts.
Plaintiffs agreed with the city of Detroit to do certain paving. The contract contained the following clauses* “ Payments for said work will be made from the proceeds of special assessments, made for that purpose upon each block paved, and not otherwise. And it is expressly understood and agreed, by and between the parties to this contract, that the parties of the first part shall not receive Or demand payment for said work, until money for the-payment of the same shall have been collected by the tity collector, or such other person as shall be appointed by the Common Council for that purpose, and actually paid' into the city treasury upon the special assessment rolls aforesaid. The said party of the second part undertakes only to use reasonable care and dispatch, in the preparation and collection of said special assessments, and the payment of the money proceeds thereof after collection, and upon, demand of the said parties of the first part.’’
Assessments were duly made, and placed in the hands of the Collector, who collected $1,761.43, and failed to pay it over. October 1st, 1861, a committee of the council reported him as a defaulter, and. suit Avas brought on his bonds November 18th, 1861. A demurrer was put in to
The first question that' arises, is, whether the city is liable directly on the contract, the money having been received by the collector.
The charter of the city provides that no public work shall be contracted for or commenced until an assessment has been levied to defray the expense, and no such work shall be paid or contracted to be paid for, except out of the proceeds of the tax or assessment thus levied. P. 89, § 11, City Charter. The treasurer is required to have custody of all moneys, and keep each fund separate, and pay no warrant against any fund unless he has money belonging to it. And moneys can only be paid upon a warrant specifying the particular fund on which it is drawn. P. 28, § 10.
It is manifest from these, and other clauses of a similar purport, that the city corporation has no power to make itself responsible for the price of any public work. Such work can only be paid for by funds actually in the hands of the city treasurer, provided for the specific purpose. The contract recognizes this, and expressly provides that the contractors shall receive no payment until the money shall not only have. been collected, but actually paid into the treasury. And it further provides, that the city shall only be bound to use reasonable care and dispatch, in the collection and payment. The contractors, in other words, recognizing the ordinary method provided by law for raising the fund, agree to look to that, and to that only. We are clearly of opinion that the city was not, under the agreement, bound to account for the money, until placed in the hands of the treasurer.
But it is claimed that there is a liability for neglecting to enforce with diligence the official bond of the collector, to compel a restoration of the money received
We think the judgment below- should be affirmed, with costs.