62 N.Y.S. 726 | N.Y. App. Div. | 1900
Lead Opinion
The precise question we are called upon to determine is, whether the failure to make a written contract between the parties hereto is
It appears as a result of that contest that the city would have been plunged in darkness after January 1, 1899, had it not been that the various lighting companies on being applied to expressed a willingness to proceed, without written contracts, provided assurances were given that the city authorities would see to it that they should be eventually paid. Such assurances were given by the commissioner and the board, who were the officers upon whom the duty devolved of attending to the lighting of the streets of the city; and, us stated by the corporation counsel, the lighting was furnished
Thus the officials, alive to the necessity and importance of having the city lighted at night, were anxious to discharge their duty, in the performance of which they had been hampered and obstructed by the assembly. That there was serious doubt as to where the power resided when the question was presented is apparent from the view taken by the judge at Special Term in the second department in the case of Blank v. Kearny, who enjoined the municipal officers from proceeding to execute any lighting contracts without the approval of the assembly ; and though it was subsequently held by the Appellate Division in that department, reversing the Special Term (44 App. Div. 592), that those officers, namely, the commissioner of buildings, etc., and the board of public improvements, could proceed without any affirmative action of the assembly, still the fact remains that their doubt had a. reasonable foundation. Their attitude and action, therefore, should be viewed not in the light of their position subsequent to the decision of the Appellate Division, when, having their rights confirmed, they entered into contracts with the lighting companies, but rather of their position as it existed in December, 1898. They then honestly believed that they were without power to make a written contract without the approval of the assembly — which they could not obtain; ana although it was thereafter decided that they were mistaken in that view, such mistake had a reasonable basis. This fact does not affect the good faith and honesty of the course they pursued, their mistake being natural under the new conditions which arose upon the Greater New York charter taking effect.
Regard being had to the fact that the only objection made is that the contract was not in writing, it would appear that all the necessary preliminary steps essential to a binding contract had been taken, and thus all the evils were avoided which the statute was intended to guard against, such as favoritism in awarding contracts without obtaining bids. Hence the failure to execute a written contract would not be fatal to the plaintiff’s right to recover. (Paul v. City of New York, 46 App. Div. 69.) If, however, that is not so, we are still of opinion that upon the conceded facts the city is liable to pay for the light furnished.
Many cases may be found wherein the salutary rule is announced that the statutory provisions as to the manner of making a contract binding upon the city must be complied with and limiting the power of the city and its officers. But, on examination, these' cases will be found to be instances where an attempt has been made to ignore or evade the statute or to enter into a contract utra vires or one which the officers had no right or power to make. In Abells v. City of Syracuse (7 App. Div. 501, 506), after stating the “ well-known principle that a municipal corporation finds the measure of its power in the statute creating it or imposing the power,” it is said: “ This principle has been invoked in many cases of local improvements in cases where fraud was apparent and collusion manifest between the corporation officers and the contractors; and when, under the guise of extra work, they have sought to avoid the publicity of advertising for bids for work and material, the courts have been careful to protect the people from such fraudulent contracts and contrivances, and hold the municipality strictly to its statutory duties and obligations; but in other cases, like the one at bar, where the corporation has received a substantial benefit and retained such benefit, and the work was necessary in carrying out the contract, either as extra work or to meet exigencies which were unforeseen when the contract was entered into, the courts have been more lenient in their construction of corporate powers upon principles of equity.”
Again, in Moore v. The Mayor (73 N. Y. 248), the court say: “ When there has been a bona fide performance of a contract, of which the city has had the benefit, there is a strong equity in
In Port Jervis Water Co. v. Village of Port Jervis (151 N. Y. 117) the court say: “ It is true that no express contract was entered into between the parties for the three years in controversy; but the water was furnished by the plaintiff and accepted by the defendant during that time under circumstances in which the law will imply a contract to pay what the water was fairly and reasonably worth for the period.”
Here the officials who directed the furnishing of the light were the persons who had control and jurisdiction over the subject of lighting, and they did not attempt to violate or evade the requirements of the statute by entering into a contract contrary to its provisions. Doubtful of their powers concerning the execution of a written contract, and in an emergency thus created and under the pressure of a public necessity which required that they should act in order to avert a condition of affairs which would not only be a menace to persons and property, but if permitted even for a short time would be a public nuisance, they appealed to the lighting companies to furnish the light which was supplied, and which it is conceded in good faith and common honesty the city should pay for. It is further conceded that the course adopted was the result of an honest and conscientious desire on the part of the public officials and the lighting companies to meet a great public emergency with reference to a situation concerning which all thought no provision had been made by law. That the officials did what was honest and best in the emergency by entering into an arrangement by which light was obtained at reasonable rates, so as to avoid precipitating the city at night into utter darkness, is conceded, as are the facts
We do not think that the court is without power to grant relief in a case where it is conceded that a thing of absolute necessity has been furnished at a reasonable price at the request of the officials having administrative charge of that department of the city’s affairs, who, acting in entire good faith, but under a mistake of law, deemed themselves wanting in power to make a written contract. We do not think the statute was intended to take away the power of the city officials charged with the duty of making such contracts to incur obligations under such a state of facts as is here presented. We find many eases holding that a municipality having the legal power to contract for a thing may be bound by an implied contract in the same manner as an individual or a private corporation. (Harlem Gas Co. v. Mayor, 33 N. Y. 309; Matter of Petition of Anthony Dugro, 50 id. 513 ; Nelson v. The Mayor, 63 id. 535, 544; Moore v. The Mayor, 73 id. 238 ; Baird v. The Mayor, 96 id. 567, 583; Port Jervis Water Co. v. Village of Port Jervis, 151 id. 111; McCloskey v. City of Albany, 7 Hun, 472; Peterson v. The Mayor, 17 N. Y. 449, 453; Kramrath v. City of Albany, 127 id. 575; Central Transportation Co. v. Pullman’s Car Co., 139 U. S. 24, 60 ; Dillon Mun. Corp. [4th ed.] § 459 ; Marsh v. Fulton Co., 10 Wall. [U. S.] 676; People ex rel. Gas Co. v. Board of Supervisors San Francisco, 11 Cal. 42; Argenti v. City of San Francisco, 16 id. 255; Brush Elec. Light Co. v. City Council of Montgomery, 114 Ala. 433; Pimental v. City of San Francisco, 21 Cal. 352; Taylor v. City of Lambertville, 43 N. J. Eq. 107.)
The leading case in this State .supporting the theory of an obligation upon an implied contract is Harlem Gas Co. v. Mayor (supra), which has been cited with approval in many subsequent cases, and which, so far as we have found, has never been expressly overruled. There the court said: “ The power, and duty of the municipal government to furnish light for the streets and avenues of the city is not disputed or put in controversy in this action. Indeed it could not be with any show of reason or good sense. In our northern latitudes,, when darkness prevails over half the twenty-four hours for a large part of the year, light diffused through
It will be noticed that we have not thus far adverted to nor placed any stress upon the conceded fact that the plaintiff here was the only company having the ability to furnish lights in the territory in question and, therefore, had no competitor; and that under the former advertisement for bids, it was the only bidder. Upon the argument this fact was not relied upon, and request was made for a decision which would be equally ajsplicable to the other companies who, by permission of the court, were heard upon the argument, and in respect to which that fact did not exist ■— there being in the territory, or a portion of it in which they furnished light, other competitors. Considering, then, the question as we have done, stripped of that circumstance, we think that the usual and exceptional facts appearing of the light being furnished in an emergency at the request of the city officials, but at a price fixed by the officer having administrative charge of that part of the city’s affairs — the failure to enter into a written contract having resulted from a technical mistake — together with the evident good faith and entire honesty of all parties, present a case never likely to create a precedent for unlawful raids upon the treasury. Whether we invoke the rule of an implied contract or not, there is, upon the facts here appearing, sufficient to justify our conclusion that the city should pay its just obligation incurred by its officers in the discharge of a great public duty and as the result of a pressing public necessity, to save its citizens from danger to person and property consequent upon the city being in darkness.
The judgment should, therefore, be for the plaintiff, but, under the circumstances, without costs.
Patterson, J., concurred ; Rumsey and Ingraham, JJ., dissented.
Dissenting Opinion
The question in this case is one of great importance, involving, as it does, the liability of the city of New York for contracts made by public officers without compliance with the provisions of the charter in relation to the execution of contracts and the incurring of liabilities by the city of New York for supplies furnished to the city where no contract has been made as provided for by the charter. That the plaintiff should be paid for the services that it has rendered in lighting the streets of the city of New York for the period named, and that the lights were furnished under the assurance of the city officials that some means would be found to provide for the payment of their bills, should not blind us to the fact that we are dealing with a purely legal question, involving as it does a liability of the taxpayers of the city of New York for the acts of public officials appointed under legislative authority. This court is now asked to grant to these plaintiffs a judgment against the city of New York, which must be paid out of the money raised by taxation ; and the question which arises at the threshold of the case and which must be controlling upon us in its determination is whether, under the charter of the city of New York, there was imposed, by the facts stated, a legal obligation upon the municipality. We should grant to this plaintiff no judgment which would take from the city of New York a large sum of money, unless under the charter of the city the
The duties and obligations imposed upon municipal corporations have become questions of the greatest importance under the modern conditions in which we are placed. The enormous growth of modern cities, the necessity of providing for the health, protection and comfort of their inhabitants, has entailed upon municipal corporations largely increased duties and obligations, with a corresponding increase of the power given to the municipality and the officers designated to act for it. In considering this question it is eventialthat we should keep clearly in view the nature of the duty imposed upon the municipal corporation and upon the officials who are authorized by law to represent it. As was said by Judge Dillon, in his work on Municipal Corporations (Vol. 1 [4th ed.], p. 34): “ If we analyze the complex powers usually conferred upon a municipality in this country we shall discover that these are of two general classes, viz.: 1. Those which relate to health, good government, efficient police, etc., in which all the inhabitants have an equal interest and ought to have an equal voice. 2. Those which directly involve the expenditure of money, and especially those relating to local improvements the expense of which ultimately falls upon the property owners.” This distinction is carried through all of the legislative provisions in relation to the performance of these duties by municipal corporations and the authority given to the public officers to perform these duties. Among the most important of these duties is that of maintaining
In the performance of such obligation thus imposed, and in the exercise of the power granted to the officers of the corporation, the charter of the corporation by which it is created is its organic law. Neither the corporation nor its officers can do any act, or make any contract, or incur any liability, not authorized thereby or by some legislative act applicable thereto. All acts beyond the scope of the powers granted are void. At page 528 (§ 457) Judge Dillon says : “ The general principle of law is settled beyond controversy that the agents, officers, or even city council, of a municipal corporation cannot bind the corporation by any contract which is beyond the scope of its powers or entirely foreign to the purposes of the corporation. * *_ * This doctrine grows out of the nature of such institutions and rests upon reasonable and solid grounds. The inhabitants are the corporators ; the officers are but the public agents of the corporation. The duties and powers of the officers or public agents of the corporation are prescribed by statute or charter, which ail persons not only may know, but are bound to know. * * * These considerations vindicate both the reasonableness and necessity of the rule that the corporation is bound only when its agents or officers, by whom it can alone act, if it acts at all, keep within the limits of the chartered authority of the corporation.” Further (at p. 540), it is said: “ An absolute excess of authority by the officers of a corporation, in violation of law, cannot be upheld ; and where the officers of such a body fail to pursue the requirements of a statutory enactment under which they are acting the corporation is not bound. In such cases the statute must be strictly followed ; and a person who deals with a municipal body is
As we have seen, the duty to maintain and regulate the streets in the city of New York is imposed upon the municipal corpoporation by the Legislature, and the methods by which that duty is to be performed are expressly regulated by the organic law under which the corporation exists; and in the performance of that duty or obligation, the officers of the municipal corporation must strictly follow the • provisions of the charter. It is only where such provisions have been so followed, and a contract is made in strict compliance with the legislative direction, that the corporation is liable. ■ This principle has been applied in this State in an unbroken line of authorities. It has been again and again reiterated by the highest court of the State. It, will be necessary to cite but one or two cases in which this rule has been distinctly and emphatically maintained. Thus, in McDonald v. The Mayor (68 N. Y. 26) it is said: “ Nor can it be that the provisions of the statute are alone for the instruction of the department and officials of the defendant. They were a restraint upon them, but upon other persons as well. They put upon all who would deal with the city the need of first looking for the authority of the agent with whom they bargain. Quite clearly do they impose upon the paying agent of the defendant a prohibition against an unauthorized expenditure. And are they not also a restraint upon the municipality itself % They are fitted to insure official care and deliberation, and to hold the agents of the public to personal responsibility for expenditure; and they are a limit upon the powers of the corporation, inasmuch as they prescribe an exact mode for the exercise of the power of expenditure. * * * It is fundamental that those seeking to deal with a municipal corporation through its
It has been attempted many times to impose upon this rule an exception in cases where an immediate necessity for the article to be procured or services to be rendered has arisen, so that it would be impracticable to comply with the express provisions of the contract, and the learned counsel for the plaintiff has endeavored to bring this case within such an. exception, and the case of Harlem, Gas Co. v. Mayor (33 N. Y. 309) is cited as an authority. In that case there
The new charter of the city of New York (Chap. 378, Laws of 1897, which took effect on the 1st day of January, 1898), made a material change in the provisions in force for making contracts for lighting public streets and buildings. By section 573 it was provided that the commissioner tof public buildings, lighting and supplies should have cognizance and control of the “ making and performance of contracts when duly authorized in accord with the provisions of this act, and for the execution of the same in the matter of furnishing the city or any part thereof, with gas, electricity or any other illuminant; ” and it was further provided that the said commissioner should prepare all contracts relating to the city for submission to the board of public improvements. By section 587 it is provided that “ The commissioner of public buildings, lighting and supplies * * * shall prepare the terms and specifications under which contracts shall be made for lighting the streets, public buildings and parks of said city. Separate contracts shall be made for such lighting in each of the boroughs of The City of New York, or in such subdivisions of the city as may appear to the board of public improvements and the municipal assembly to be for the best interests of said city * * * Such bids shall be prepared and advertised for, and such contracts shall be executed in the manner prescribed for herein as to other contracts entered into by said city or the departments thereof. Contracts shall be made for the term of one year and shall be awarded to the lowest bidder.”
It cannot be doubted but that these provisions of the charter provide a complete scheme for lighting the public streets and buildings, and for the procuring by the city of the necessary gas, electricity or other illuminants for that purpose. The commissioner who is to have cognizance and control of the making and performance of contracts for that purpose was designated, and his duty as to such contracts was prescribed by section 587. The number, kind and location of the lights to be furnished under each of said contracts were to be determined and prescribed by the commissioner. Bids were to be prepared and advertised for and contracts executed in the manner prescribed in the charter with regard to other contracts entered into by the city or the departments thereof; and such contracts were to be made for one year and were to be awarded to the lowest bidder. Nothing could be more specific, and it is difficult to see how the Legislature could have more clearly indicated its intention to require contracts for the furnishing of gas and electricity, or other illuminants, to be furnished under general contracts of this kind to run for one year, and to be let to the lowest bidder, after public advertisement for bids; and to restrict the power of the commissioner to make such contracts in any other manner than that prescribed by the charter. It seems to me that it was intended that the contract should provide that the contracting party should furnish to the city the light required by the city and fix the price that it was to pay. 'Undoubtedly the commissioner could, during the year, change the number of lights to be supplied by the contracting
Look for a moment at the effect of any other construction. Any officer holding this position of commissioner of buildings, lighting and supplies, by simply making daily or monthly contracts could evade all the provisions of this statute and pay to those he pleases the prices he pleases for the services to be rendered to the city; and yet it is perfectly clear that it was the intention of the charter that such contracts should not be made, except when based upon bids submitted in consequence of public advertisement. These carefully drawn provisions of the charter are evidently intended for the protection of the city, to prevent the making of private contracts. The proper officers are authorized to make contracts, but the methods are prescribed by which they shall be made ; and clearly, it seems to me, the authority of the officials to make a contract is limited to such contracts as should be made in the manner prescribed by the charter. To hold that these express and detailed provisions for regulating the action of the commissioner are inapplicable, if the commissioner sees fit to make a contract for a less period than a year, or if he neglects to make a contract as authorized so that in order to have the streets lighted he is required to make private contracts, would give him authority to pay the prices that he pleased and upon the terms that he was pleased to impose, and would be to abrogate this carefully conceived and complete scheme for making contracts for lighting, and frustrate the evident intent of the Legislature. That the commissioner had the power to make this contract
There should, therefore, be judgment for the defendant, with costs.
Dissenting Opinion
That the commissioner of public buildings, lighting and supplies did all in his power to make a contract for lighting with the plaintiff, in the manner and for the time required by the statute, and that so far as he could he took every step necessary for that purpose is conceded. It is also conceded that he was prevented from carrying the contract into effect by the failure of the municipal assembly to pass a general ordinance regulating the making of such contracts, and by its refusal to approve this particular contract without giving any valid reason so that the contract might be amended. It is also conceded that upon the verbal request of the commissioner the plaintiff furnished lights for the time during which it claims to be paid, although the statute authorizing contracts for lighting requires them to be made in a particular way and for a particular time, and this was not done. (Greater New York Charter, §§ 419, 587.) And the law seems to be settled that, where the mode of contracting is specially and plainly prescribed and limited, that mode is exclusive and must be pursued or the contract will not bind the corporation. (Dillon Mun. Corp. § 449, and cases cited.) But it is sought to hold the city liable for what was furnished upon the theory that the lighting was absolutely essential for its safety, and that an emergency had arisen, therefore, which made it necessary that such lighting be had, although the mode prescribed by statute could not be followed. But there was no emergency. The matter was not a casus omisstis.
Neither the case of Harlem Gas Co. v. Mayor (33 N. Y. 309) nor the other cases cited authorize any such contention. Indeed I do not believe that a liability can be imposed upon a municipal corporation in any manner except in that provided by statute, however grave an emergency may arise. The powers of municipal corporations are fixed by the law. So far as governmental duties are " imposed upon them the statute not only prescribes the duties, but the manner of their execution, and I can see no reason why their powers in regard to these matters should be extended or the prescribed manner of their execution abandoned, because the Legislature has forgotten or has not seen fit to provide •for an unforeseen emergency. There is no rule of law, constitutional or otherwise, that I am aware of which would authorize any official, from the President of the United States down, to assume any power which the law has not given to him. It is quite true that more than one occasion has arisen in our history where a serious emergency has arisen, to meet which no statutory provision had been made; but I am not aware that in any of these cases the power which was assumed by an executive officer was supposed to have been properly exercised, and whenever it was assumed, so far as my reading goes, he either acted upon his private responsibility, or having assumed to act by virtue of his office, he procured a ratifica
There can be no stronger illustration of the proposition which I have advanced. Another instance was the action of the President of the United States in 1861 in suspending the writ of habeas corpus in the face of a grave 'emergency which threatened the very existence of the government. While undoubtedly the exercise of an executive function which he was able to carry out only by a proclamation which he could enforce because he had the army at his back, yet he procured a ratification by that body of his act, for the reason, if 1 recollect rightly, that he had usurped the power which the law did not give him. (Ex parte Merryman, Taney C. C. Dec. 243, 266, et seq.) Many other instances might be cited both in England and in this country, but it is unnecessary to enlarge upon this point because in this case there was no emergency. There can be no doubt, it seems to me, that the action of the commissioner could not bind the city, and the court is bound so to adjudge. When the municipal assembly obstinately refused to perform the duty which the law had imposed upon it, and thereby put it out of the power of the commissioner to provide for the lighting of the streets, it would have been far better that the people of this city should have felt the inconvenience that resulted from it in order that they might be induced to visit their indignation upon the men who were responsible, rather than that this plaintiff; should lose its money or that the courts should be asked to ratify an illegal contract. Such ratification is within the power of the Legislature alone, and in so just a case as this there can be no doubt that that body will speedily relieve the plaintiff, and make provision that such a situation cannot arise again.
Judgment ordered for plaintiff, without costs.
Concurrence Opinion
I concur in the result of Mr. Justice O’Brien’s opinion. The city authorities were bound not to allow such a condition of things to obtain that the streets became, so to speak, public nuisances, which they would be if allowed to remain unlighted. If the streets were to remain in darkness the city would be liable for any and all damages which might be sustained because of the want of light. This condition of things the authorities having charge of this branch of the city government were bound to avoid; and as they were not responsible for the situation and had done every thing in their power to avoid the difficulty which had arisen, there is an implied obligation upon the part of the city to pay for supplies, etc., furnished to it in order to avoid the great evils which would have ensued from allowing the city to remain in darkness.