162 Ga. 534 | Ga. | 1926
Lead Opinion
(After stating.the foregoing facts.)
The paving involved in this case was done under' “An act to amend an act establishing a new charter for the City of Atlanta, approved February 28, 1874, and the several acts amendatory
Before the city council can pass an ordinance and make a contract for the paving of a street, and before it can pass an ordinance levying an assessment against owners of land abutting on such street or portion of street, for the payment of their shares of the cost of laying such pavement, it must be petitioned in writing by the owners of a majority of the frontage of the land abutting on said street or portion of said street, seeking to have the pavement laid. This fact is jurisdictional. Tlie non-existence of such fact renders ordinances and contracts made for this purpose null and void. In the absence of this jurisdictional fact an ordinance authorizing the pavement, and contract for laying the pavement, and an ordinance levying an assessment against abutting-land owners to pay for such pavement, are utterly void and unenforceable, if they are attacked in proper time. While this is so, the owners of abutting property may be precluded from attacking the validity of such ordinance .and contract on this ground, by their failure to make timely objections thereto. Paragraph (b) of section 1 of this act provides for an advertisement giving notice of the introduction of the resolution or ordinance for the paving, repaving, or improvement of any public street, public place, or portion thereof, under this act. This advertisement shall notify the property-owners or others interested to appear at the meeting of the general council to be held at a time stated in the advertisement, and make any and all objections they may desire to urge to the passage of such resolution or ordinance. It further provides that at
What was the purpose and intention of the legislature in enacting the above provisions of this act, and what is the effect of the failure of owners of abutting property to make objections to the passage of the ordinance providing for such pavement, and, in the event their objections to such ordinance are overruled by the general council, they do not within fifteen days thereafter commence legal proceedings to prevent the assessment of their property for" the purpose of paying their pro rata shares of the cost of such im
. So in City of Mariettta v. Dobbins, 150 Ga. 422 (104 S. E. 444), this court, in construing a statute similar to the one under
Is the contract between the city and construction company for the laying of this pavement void ? The plaintiffs contend that the contract is void under section 100 of the charter of Atlanta, because Inman was a member of the city council and a large stockholder in the construction company at the time the contract was made. On the other hand, the city and the construction company maintain that the contract is not void, because (a) the above section of the city charter is not applicable under the facts of this case; (b) because Inman did not vote for the preliminary ordinance providing for this pavement, for the ordinance accepting the bid of his company for this work, and for the ordinance accepting the pavement after it was finished, and did not use his influence to induce members of council to vote for them, nor take any part in securing the execution of the contract; (c) because the contract is fair and free from fraud; and (d) that after this controversy aróse Inman resigned from the council, which thereafter passed an ordinance or resolution ratifying and confirming the ordinances aforesaid, and the contract, and the acceptance of the pavement laid thereunder by the city.
By the common law and independently of statute, this contract is contrary to public policy and illegal. One who is entrusted with the business of others will not be allowed to make out of the same a pecuniary profit to himself. This doctrine is based upon principles of reason, morality, and public policy. No public agent shall have the opportunity or be led into the temptation to make profit out of the public business entrusted to his care, by contracting with himself, directly or indirectly, in respect to such business. Mayor &c. of Macon v. Huff, 60 Ga. 221; Hardy v. Gainesville,. 121 Ga. 327 (48 S. E. 921); Byrd v. Cook, 146 Ga. 657 (92 S. E. 61); Twiggs v. Wingfield, 147 Ga. 790 (95 S. E. 711, L. R. A. 1918E, 757); Turner v. Atlanta, 160 Ga. 216 (127 S. E. 652);
But, independently of this common-law principle, this contract is illegal under the charter of the City of Atlanta. Section 100 of that charter declares that “It shall not be lawful for any member
In Sanders v. Gainesville, 141 Ga. 441 (81 S. E. 215), this court held that If a contract for the construction of a public improvement has been let, and an assessment levied to pay such contract price, the validity of such contract is essential to the validity of the assessment; since otherwise the assessment would be levied
While we hold that the contract under which this pavement was laid, and the assessment levied for the payment of the costs of this improvement, are- invalid and void, are the plaintiffs -entitled to the relief sought under the facts of this case? They are in a court of equity. They are seeking affirmative equitable relief. They are seeking to have said contract and assessment declared illegal and void. They are seeking to restrain the City of Atlanta from carrying on proceedings to validate a proposed issue of bonds for the payment of the cost of said improvement, and from selling and disposing of the same; and they are seeking to enjoin the construction company from taking any legal proceedings, or other steps of any character whatsoever, to enforce the collection of its claim against the City of Atlanta for such payment, from undertaking to procure an assessment by the city against the property-owners for the work done under this contract, and from altering the status between the construction company and the city and the property-owners. They are not defensively setting up the invalidity of this contract and this assessment. The relief which the plaintiffs seek is equitable relief. Campbell v. Murray, 62 Ga. 86, 96. They are seeking the writ of injunction. They thus ask for extraordinary equitable relief. “He who would have equity must
In the contract between the city and the construction company, the city agreed to issue bonds to cover the total cost of this street improvement, and thereupon to promptly dispose of these bonds and pay the contractor such sum as might be due it for the paving of this street. These bonds were to be issued under the provision of the constitution which permits the city to issue bonds for street improvements without the approval of a popular vote. Acts 1930, p. 35. The legislature has provided the terms and conditions upon which this right can be exercised. Acts 1931, p. 313. The trial judge enjoined the city from paying to the contractor any money other than that received from the property-owners, and from paying the contractor any money from its public treasury. To this portion of the judgment the city and contractor except. The city was permitted to file proceedings to validate the bonds proposed to be issued by the city in order to raise the money with which to pay for this street improvement; but the trial judge in his judgment enjoined the hearing of the proceedings to validate these bonds, pending the final decision of this case, to which order the defendants except. The court did not err in holding that the contract between the city and the construction company was invalid, and did not -err in holding that the same had not been legally ratified and adopted by the city council after Inman had resigned as a member thereof. But in view of the principle announced in dealing with the assignments of error complained of in the main bill of exceptions, that parties
Judgment on the main bill of exceptions affirmed, and on the cross-bill of exceptions reversed.
Concurrence Opinion
I concur in the judgment rendered in this ease, but dissent from some of the conclusions stated in the opinion. In regard to the jurisdictional question dealt with in the first headnote and corresponding division of the opinion, I think the right conclusion is reached. Moreover, even if the petitioners are not estopped from attacking the jurisdiction on the ground stated, it seems to me that their attack is without merit. I also concur in the ruling made in the fourth and fifth headnotes and corresponding divisions of the opinion. The above-stated rulings control the case, and it seems to me unnecessary to consider the other questions raised. Since, however, the majority of the court have thought best to consider and decide them and have reached conclusions in which I can not concur, my dissent must be recorded.
Of course, section 18 of the charter of the City of Atlanta prevents and makes unlawful the making of any contract with the city by any member of council who is interested either directly or indirectly. This is a wholesome and necessary law. The same comment applies to Civil Code, §§ 855 (aa) and 900. These provisions are quoted by the court. But it must be remembered, in the first place, that the paving provided for in the contract was not to be paid for out of the city treasury but by the abutting-property owners; and in the second place,'that the city had the undoubted legal right to contract for the paving. It is clear from the facts in the case that the project.of having Ponce de Leon Avenue repaved was due to the initiative of the property-owners. They filed a petition with the mayor and council, asking that the avenue be paved. On November 5, 1924, the council published in one of the Atlanta newspapers a notice that an ordinance by the mayor and general council, providing for the pavement, would be considered on November 17, 1924, and that property-owners and others interested were notified to appear at that time and
At this point we encounter the question of one of the members of council being disqualified because of interest in the construction company. No moral wrong has been charged to him; he did not vote nor did he participate in any way in awarding the contract. The council of which he was a member did award the contract to a corporation in which he was interested. This act was contrary to public policy, and is so declared in our code and
Here the court said that even with the disqualified member of council remaining a member, if he had transferred his interest in the publishing company, the city council, composed exactly as it was when the contract was made, could have entered into a -new contract. In this case the disqualified member resigned and was no longer a member of council. His influence and interest were entirely removed so far as his severance from the municipal governing body could accomplish that end. After his resignation, there is no valid reason why the city council could not ratify a contract already made at the request of the property-owners, and thus do the equitable thing. The court was authorized, under the evidence, to find that the paving was laid in accordance with the city’s specifications, and that it had been approved by the officer employed by the City of Atlanta to direct and inspect such work. Eor these reasons, in my opinion, the trial court did not err in the judgment there rendered.
It would be inappropriate to extend this discussion by setting out, in detail, the views of other courts. I content myself with citing the following cases, which contain, in themselves, many other citations: Fort Wayne v. Lake Shore Ry., 18 L. R, A. 367 (132 Ind. 558, 32 N. E. 215, 32 Am. St. R. 277); City of Findlay v. Pertz, 66 Fed. 427 (2) (13 C. C. A. 559, 29 L. R. A. 188). The opinion in this case was written by Judge Lurton, afterwards a Justice of the Supreme Court, and concurred in by Judge Taft, at present Chief Justice of the United States. City of Detroit v. Grummond, 216 Fed. 273 (132 C. C. A. 417); Hill v. Indianapolis, 92 Fed. 467; Diver v. Keokuk Savings Bank, 126 Iowa, 691 (102 N. W. 542, 3 Ann. Cas. 669); Kagy v. Independent Dist., 117 Iowa, 694 (89 N. W. 972); Ballentine v. City of Columbia, 129 S. C. 410 (124 S. E. 643).