Byrne & Speed Coal Co. v. City of Louisville

224 S.W. 883, 189 Ky. 346, 1920 Ky. LEXIS 429
CourtCourt of Appeals of Kentucky
DecidedOctober 19, 1920
StatusPublished
Cited by13 cases

This text of 224 S.W. 883 (Byrne & Speed Coal Co. v. City of Louisville) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Byrne & Speed Coal Co. v. City of Louisville, 224 S.W. 883, 189 Ky. 346, 1920 Ky. LEXIS 429 (Ky. Ct. App. 1920).

Opinion

Opinion of the Court bt

Chief Justice Carroll

Affirming on original and cross appeal.

In October, and on tbe first day of November, 1917, tbe Byrne and Speed Coal Compnay sold and delivered to tbe city of Louisville, for use in connection with its municipal affairs, coal of tbe value of $1,352.40; on November 2, 3, 4 and 5, 1917', it furnished to tbe city for tbe same purpose coal of tbe value of $643.42. There is no question made about tbe quantity of coal furnished or tbe price that was charged therefor, but tbe city refused to .pay the bill upon the sole ground that at tbe time tbe contract was made and tbe coal furnished T. J. Morrow, a paid employee of tbe Byrne and Speed Coal Company, was a member of tbe city council.

Tbe case having been submitted to tbe judge of tbe lower court be dismissed tbe petition in so far as it sought to recover $1,352.40 for tbe coal furnished and delivered prior to November 2, 1917, but gave a judgment in its favor for $643.42 for tbe coal furnished and delivered on November 2, 3, 4 and 5. From tbe judgment dismissing its petition as to tbe item of $1,352.40 tbe coal company prosecutes this appeal and tbe city prosecutes an appeal [348]*348on the same record from so much of the judgment as required it to pay $643.42.

It is provided in part in section 2768 of the Kentucky Statutes which is a part of the charter of cities of the first class, that “they (members of the council) shall not be directly or indirectly interested in any contract with said city or in any application therefor, or a candidate for or hold any office or employment for pay in any company or corporation which holds, or is an applicant for any contract with the city.”

This statute was the subject of consideration by this court in the case of Neunmacher v. City of Louisville, 98 Ky. 334. In that case the question involved was the validity of a contract between the city of Louisville and the Courier-Journal Job Printing Company, which was assailed because a member of the general council of the city held an office for pay in the printing company at the time the contract was made.

In holding the contract to be void the court said: “It is proper to observe here that no suggestion is made that the member of the council who was in the pay of the contracting company had aught to do with making the contract involved in this ease. That tribute to his integrity is paid by counsel assailing the contract. But it is not contended that this fact affects the question. In our opinion the effect of this section is to render void contracts between the city and any person who is a member of. the council or between the city and any corporation which has a member of the council for one of its officers or paid employees.”

In Jacques v. City of Louisville, 106 S. W. 308, which was also a case involving the validity of a contract made between a firm in which a member of 'the council was a paid employee and the city, it was attempted to show that the concern doing the work contracted for was not the firm with which the' councilman was connected, but the court said that although the contract was made with a concern other than the firm of which the councilman was an employee this was a mere device or scheme to evade the .statute, and held that it could not be so evaded.

In Bradley & Gilbert Company v.. Jacques, 110 S. W. 836, the question as to the validity of a contract prohibited by section 2768 of the statutes was again considered and the court, following the ruling in the Neumacher and Jacques cases, said: “It does not appear that Coder, who was a salaried bookkeeper for the firm [349]*349that made the contract, had anything to do with making the sales or that he even knew of them. No charge of bad faith is made against any of the defendants; on the contrary, the entire good faith of all the defendants is not only conceded by the plaintiffs but.is fully concurred in and adjudged' to be true by the court. It has, however, been expressly decided by the Court of Appeals that the fact of the good faith of the transaction is immaterial under the statute.” To the same effect is Bornstein v. Louisville School Board, 137 Ky. 108.

Counsel for the Byrne and Speed Coal Company accept as sound the construction of the- statute announced in these cases but seek to take this case out of it upon the ground that such an emergency existed as would justify making an exception to the rule of construction laid down in these cases. The emergency relied on to make the exception and which it is admitted in the record e’xisted, consisted in the fact that-on account of conditions created by the war there was a coal shortage, and the city, although it made diligent effort to do so, was unable to obtain the coal necessary to supply the municipal institutions from other coal dealers- in the city, and when it could not obtain from other coal dealers the coal needed it prevailed on this company to furnish the coal. The claim of the coal company is a very meritorious one, but we do not think the admitted facts would warrant us in saying that the wholesome provisions of the statute as construed by this court should not be applied to this transaction.

■ The statute is peremptory in its terms and it has been wisely construed to prevent any evasion of the prohibition laid down by its terms. If it was once admitted that exceptions -might be made or that conditions might arise that would justify putting the statute aside, it is- hardly to be doubted, in view of the common experience, - that frequent and successful attempts, would be made to render the statute practically worthless.

Counsel for the coal company rely on what was said by the court in Hopkins County v. St. Bernard Coal Company, 114 Ky. 153, as authorizing in extraordinary cases an exception to be made for the purpose of enabling municipalities in cases of emergency to perform their necessary functions. In that case it appears that it became imperative that the county of Hopkins should employ an extra police force for the purpose of maintaining peace and order in the county, and to pay this force the county [350]*350was required to -exceed the indebtedness authorized by section 157 of the Constitution, and the court held that the duty of the county to preserve the public peace and protect life and property could not be avoided because the income provided for the year would not be sufficient to pay the police force.

The court felt obliged in that case to make the exception on account of the extraordinary situation that demanded it, but no such uncommon situation existed at the time this coal was purchased as would authorize us to apply the exceptional rule laid, down in the Hopkins' county case. That this rule should not be extended to ordinary emergencies is made clear by the court in the cases of Knipper v. City of Covington, 109 Ky. 187, and Fiscal Court of Franklin County v. Commonwealth, 139 Ky. 307. We are therefore of the opinion that the judgment of the lower court rejecting, the claim of the coal company for $1,352.40 was correct.

The court permitted a recovery by the coal company of the $643.42 upon the ground that the terms of the city council of which Morrow was a member expired at midnight on November 1, 1917, and therefore there was no obstacle that.prevented the making of a contract between the coal company and the city on November 2, 3, 4 and 5;

Under the statute members of the city council are elected at the regular November election every two years.

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Bluebook (online)
224 S.W. 883, 189 Ky. 346, 1920 Ky. LEXIS 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byrne-speed-coal-co-v-city-of-louisville-kyctapp-1920.