Auerbach v. Salt Lake County

63 P. 907, 23 Utah 103, 1901 Utah LEXIS 4
CourtUtah Supreme Court
DecidedJanuary 7, 1901
StatusPublished
Cited by11 cases

This text of 63 P. 907 (Auerbach v. Salt Lake County) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Auerbach v. Salt Lake County, 63 P. 907, 23 Utah 103, 1901 Utah LEXIS 4 (Utah 1901).

Opinion

Having stated the case as above,

Baetoh, C. J.,

delivered the opinion of the court.

The appellant insists that error was committed in rendering this judgment; that when the court found that the warrant in dispute was void, it followed that the judgment must be for the defendant; and that the only way a county can be made liable at all is expressly by contract made, and liability created, in the manner prescribed by statute; and that no liability as to a county can be implied.

It is true the county court was wholly a creature of statute and, that, as a general proposition, the acts of such a court, and of a board of county commissioners, are void and without force or effect, when the statute is not pursued. This is so well settled as to need no citation of authorities. It does not follow, however, that, under no circumstances, can a liability be created when the statute is not in all respects pursued, or when some of the members of the county court are guilty of fraud with reference to some part of a transaction. Conceding that the contracts of March and May, tainted not only with the most reprehensible but with criminal conduct and acts of some members of the county court, were void, still it is not a necessary sequence that, by subsequent proceedings and acts of that court, of which some of'the members were acting in good faith, and were innocent of the fraud and corruption, in relation to the furniture — the same subject-matter of the fraudulent transaction, a liability, on the part of the county, could not be created in favor of an innocent holder of á warrant. We apprehend that the creation of such a liability by the court was possible notwithstanding the fraudulent contracts, to which some of the [115]*115members of the court were parties, and it, therefore, becomes important to look into the subsequent proceedings and acts of the county officers.

Erom the evidence it appears that at a meeting of the county court held on June 19, 1894, at which all the members were present, a resolution was adopted which reads: “Resolved that the county clerk be and he is hereby directed to draw a warrant in favor of A. TI. Andrews & Company of Chicago, for the sum of $15,000 and deliver the same to M. Hayken, as agent of said A. IT. Andrews & Company, upon the execution and delivery to said clerk of the indemnity bond duly signed by the said A. H. Andrews & Company, as principal, and by Frank Enox, E. W. Duncan and G. S. Holmes, as sureties, and upon the filing by the said clerk, of the documentary authority of said Hayken to sign said bond on behalf of said A. H. Andrews & Company.”

In accordance with this resolution, the undertaking therein mentioned was filed, and in the obligatory part thereof, it was stated: “Now, therefore, if the said A. H. Andrews & Company shall at their own expense and risk transport to and deliver in the said building the said furniture, fittings and appliances mentioned and specified in the said contract, to the value of $15,000, in the specifications or schedules therein referred to, and set up the same in said building as required in said contract as soon as they or their agent shall be notified so to do by the architect of said building, or the county court of said county, and shall in all respects perform all the things in said contract required and stipulated to be by them performed, to the value of $15,000, then this obligation shall be void; otherwise to remain in full force and effect.”''

Notwithstanding the fact that the minutes of the court, showing the passage of this resolution, and the bond, were introduced in evidence over the objections of the appellant, we are of [116]*116the opinion, that, under the pleadings, they were properly admitted, as tending to throw light on the whole transaction, and to show what steps were taken to secure the delivery of the furniture, which, the evidence shows, had been completed and was ready for shipment. Whether this action of the county court, and the compliance therewith by Andrews & Company created a valid contract, and whether it authorized the issuance of the warrant, or whether the warrant issued in pursuance thereof is absolutely void, are questions which, from the view we have taken of the case, we do not deem important or necessary to decide. It is doubtless true and may be admitted that the appellant could have rescinded all these transactions, relating to the purchase of the furniture, the last one included because the resolution and bond refer to the former fraudulent contracts, but it has not seen fit to do so. On the contrary, it received and accepted the furniture, pursuant to the contract of June 19, had it set up in the city and county building, and ever since has used and exercised ownership over the same, and has never attempted to rescind the contract, or returned or offered to return the furniture, or paid or offered to pay to Andrews & Company, or Auerbach & Brother, or the plaintiff, who must be regarded as the equitable assignee of Andrews & Company to the extent of the amount paid for the warrant, any part of the actual value of the furniture, although in its counterclaim the defendant admits that the actual market value of the furniture was $27,000, and simply asks for a deduction, from the amount of plaintiff’s claim, of $7,640, thereby admitting that the balance of the $15,000, at least, was due the plaintiff. Even after the change in the personnel of the county court, when the same was composed of members, none of whom were parties to the corrupt contracts of March and May, and after they had discovered the fraud, no effort whatever was made to rescind the [117]*117contracts, or to return the goods, or pay the actual value therefor.

Under such circumstances the defendant can not be permitted to retain and use the goods, and at the same time refuse to pay the fair market value therefor to an innocent holder of a warrant.

In Argenti v. City of San Francisco, 16 Cal. 256, Mr. Justice Cope, delivering the opinion of the court said: “Erorn an examination of the authorities, it is evident that the doctrine contended for by the counsel for the city can not be maintained. The theory is, that a municipal corporation can only be bound by a contract to which it has expressly assented, and that such a corporation is exempt from the operation of the rules which relate to and govern the contracts and liabilities of individuals. We readily admit that the powers of a corporation are derived solely from the act creating it; and that as a general rule, these powers must be exercised in the particular mode pointed out by the charter. It doés not follow, however, that even a want of authority is, in all cases, a sufficient test of the exemption of a corporation from liability in matters of contract.”

In the same case, Mr. Justice Eielu, concurring in the judgment announced by the court, said: “If the city obtain the money of another by mistake, or without authority of law, it is her duty to refund it — not from any .contract entered into by her on the subject, but from the general obligation to do justice which binds all persons, whether natural or artificial.

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Cite This Page — Counsel Stack

Bluebook (online)
63 P. 907, 23 Utah 103, 1901 Utah LEXIS 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auerbach-v-salt-lake-county-utah-1901.