146 P. 550 | Utah | 1915
The plaintiff brought this action as a taxpayer of Price, a municipal corporation, hereafter called corporation, against said corporation; against the mayor and eouneilmen thereof; against its treasurer; and against one Manson, who is the lessee under a certain lease entered into by said corporation as lessor, and which the plaintiff, for reasons hereafter stated, asked to have vacated and annulled. The plaintiff, in his complaint, in substance, alleged the corporate existence of said corporation, and that Gunderson was its mayor, and the other five defendants the eouneilmen; that Hunten was .its treasurer; and that J. H. Manson was the lessee under a certain pretended lease entered into by said corporation with him whereby said corporation, on the 31st day of March, 1914, pretended to “lease for a period of five years all of the lands, buildings, machinery, appliances, tools, and fixtures constituting the lighting and generating plant” owned by said corporation to said Manson. The facts respecting the making of said lease, and the terms and conditions thereof, are set forth in detail, and it is alleged that said lease is void and of no effect, for the reason that the mayor and councilmen, acting for said corporation, had failed and neglected to comply with the provisions of the laws of this state in entering into said lease; that said Manson is in possession and
Plaintiff’s counsel contend that the lease in question is invalid: (1) Because the mayor and city council had no authority under the law to sell the lighting plant; and (2) because they refused to comply with the provisions of chapter 69, Laws Utah 1913, p. 110, in which the particular method which must be pursued by the city authorities in leasing such property is specifically provided for.
The defendants contend that this act is so vague and im-:ertain in its provisions respecting a lease that it is void for mcertainty. ¥e think otherwise. While the act is inartifi-
“If no formal mode of making a municipal contract is prescribed by charter, statute, or ordinance, then the contract may be made in the method common to all corporations. But if the method of contracting is prescribed by valid law, that method must be observed, and a contract unexecuted in whole or in part, made in any other method, or defectively made by the prescribed method, may not be enforced at the suit of either party.”
McQuillan says:
“If certain steps must be taken before or after a contract is entered into, but they are not taken, the contract is invalid. For example, statutes or charter provisions sometimes prescribe that particular contracts shall not be entered into unless authorized or ratified by a majority vote of the electors.”
"Where such is the case, of course, the method prescribed must be observed and followed, or the contract, whatever it may be, is invalid.
We think the district court committed no error in overruling the demurrer and in entering the judgment appealed from.
The judgment is .therefore affirmed, with costs.