49 Fla. 315 | Fla. | 1905
(After stating the facts.)
The jurisdiction of a court of equity to entertain a bill for injunction and accounting such as was filed in this case is not questioned. Neither is a question presented as to the sufficiency of the allegations of the bill to obtain the relief prayed. One of the principal questions involved and argued is, whether county commissioners may through employes selected by them purchase from mem»bers of their body or from firms in which such members are partners, supplies to> be used for county purposes, audit and approve the accounts and pay for same by warrants drawn on coitaty funds. The law does not permit a trustee or an agent to make contracts with himself regarding the property committed to llis charge, and this on grounds of public policy. Neither does it permit him to so conduct himself with respect to his trust, as to create a contract by implication with himself. The temptation to abuse his trust and to benefit himself to the detriment of the trust property is too great to permit him to thus deal with it. In such dealings he can not act impartially, for self interest will prompt a one-sided view, inclining him to adopt that course which will benefit him individually. To permit him to buy from himself, puts him in the attitude of being a judge in his own cause, and of attempting to serve two masters whose interests are diametrically opposed. The law does not denounce such conduct on the theory that fraud or wrong inevitably results, but because it may and probably will result, hence proof that no wrong was intended or committed and that no fraud resulted in a particular case does not render the contract valid. The lafw frowns upon and denounces such conduct in every case, and the principal or cestui que trust is given a remedy by which all such transactions
The defendants alleged in their answers and produced testimony tending to prove that no actual fraud was perpetrated or intended against the public in the transactions complained of in the bill; that the supplies purchased had been actually used for the benefit of the county, and it is contended that as the commissioners would have had authority under the law to purchase them from another and to pay the contract price, or in the absence of a contract, what they were reasonably worth, and as the amounts paid for same were the customary prices charged by other persons dealing in such supplies in the county, it would be inequitable to permit the county to recover the money paid for ihe supplies where they had been used and' could not be returned as was the case here.
We are of opinion that all transactions whereby the commissioners or those acting under their authority, procured supplies from firms in which any of the commisisioners or their purchasing agents were partners, are illegal, being opposed to public policy, and that it was proper' to enjoin the payment of warrants issued in payment for such supplies. But we think the court below erred in decreeing the repayment by the commissioners of all sums actually paid out on account of every transaction for supplies obtained from firms in which a commissioner was a partner, and hold that the commissioners can only be required to account for and pay into the treasury the full amount paid out on account of such transactions as were tainted with actual fraud, or for such supplies as were not necessary, and beneficial to the county, or which could not have been lawfully purchased by the commissioners from other persons, for the use of the county. The commissioners must, however, be held to account for and pay into the county treasury all profits or excess over the actual cost of the supplies to those who furnished them, such cost not to exceed their reasonable market value on all supplies so furnished which were nec
In order that no misapprehension may arise it may be well to state that the injunction against payment of outstanding warrants issued for supplies purchased from firms in which a commissioner was a member does not operate to prevent the commissioners from issuing other warrants in lieu thereof, to the parties who furnished the supplies for such amounts as may be found proper in accordance with the rules laid down above.
The appellants contend that as Aichor and Belcher, two members of the board of county commissioners, were not members of any firm from which the supplies were obtained, and as the evidence fails to show that these two men voted to order the payment of any of the accounts criticised, it was error to enter a decree against them jointly with the other three. The answer to this contention is that the bill alleges that all the defendants as county commissioners audited all of the claims, and the answer of the commissioners does not deny, but admits the fact and nowhere asserts that Aichor and Belcher did 'iot participate and vote with the other members for the allowance and payment of the claims.
The bill alleges that two claims one in favor of Lummus
The decree appealed from will be reversed and the cause remanded with direction that it be referred to a master to take further testimony, and to state an account in conformity with the views herein expressed, and for such further proceedings as may be conformable to equity.