City of Columbus v. Chicago Bonding & Surety Co.

11 Ohio App. 42, 31 Ohio C.C. (n.s.) 26, 31 Ohio C.A. 26, 1918 Ohio App. LEXIS 135
CourtOhio Court of Appeals
DecidedDecember 5, 1918
StatusPublished
Cited by4 cases

This text of 11 Ohio App. 42 (City of Columbus v. Chicago Bonding & Surety Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Columbus v. Chicago Bonding & Surety Co., 11 Ohio App. 42, 31 Ohio C.C. (n.s.) 26, 31 Ohio C.A. 26, 1918 Ohio App. LEXIS 135 (Ohio Ct. App. 1918).

Opinion

Kunkle, J.

Plaintiff in error seeks to recover from defendant in error, a bonding company, upon a certain bond given by The Kokomo Foundry & Machine Company to plaintiff in error for the purpose of securing the performance of a contract entered into between the city of Columbus and The Kokomo Foundry & Machine Company for the installation of certain stokers for the city municipal light plant. The substance of said bond is as follows:

“Know All Men By These Presents, That we, the undersigned, Kokomo Foundry & Machine [43]*43Company of Kokomo, Indiana, as principal and Chicago Bonding & Surety Company of Chicago, Illinois, as sureties, are hereby held and firmly bound unto the city of Columbus, Ohio, in the penal sum of Three Thousand Dollars, for the payment of which well and truly to be made, we hereby jointly and severally bind ourselves, our executors and adminislrators.

“Signed this 28th day of September, 1916.

“The condition of the above obligation is such that if the said Kokomo Foundry &; Machine 'Company, shall well and faithfully do and perform the things agreed by them to be done and performed according to the terms of the foregoing contract, then this obligation shall be void; otherwise the same shall remain in full force and effect.”

The petition contains the averments necessary to establish liability, and further alleges that the contractor has performed no part of the work specified in the said contract, and has not furnished, delivered, or erected two 500 'horsepower underfeed stokers at the municipal light plant in said city of Columbus, nor performed any work in connection therewith, and that Upon the failure of said contractor to fulfill its contract plaintiff in error was obliged to purchase the said material elsewhere and at a price $4,020 greater than the contract price with The Kokomo Foundry & Machine Company.

It is conceded that neither the contractor, nor the receiver of said contractor, has furnished any material or performed any labor under the contract, and that no payment has been made by the city to the contractor or receiver upon such contract.

[44]*44Defendant in error filed an answer containing two defenses.

The second defense, with which we are now concerned, alleges as follows:

“This defendant expressly denies that the Board of Purchase of the city of Columbus^ Ohio, was ever at any time authorized or empowered to advertise for bids upon or to enter into any agreement or contract for the purchase of two 500 ¡horsepower Underfeed Stokers for use in the extension of the municipal light plant of the city of Columbus or for any other purpose, or that any money was ever appropriated by the said city (council to pay the expense of the purchase or installation of the same, or that said Board of Purchase was ever at any time authorized or empowered to enter into any contract or agreement with the said Kokomo Foundry & Machine Company or with any other persons for the purchase of two 500 horsepower Underfeed Stokers for use by said city of Columbus, as aforesaid.'

“But on the contrary this defendant expressly avers that said alleged contract or agreement purporting to have been made with the said Kokomo Foundry & Machine Company for and on behalf of the city of Columbus, Ohio, was made by the said Board of Purchase wholly without authority of any kind whatsoever from the city of Columbus or from the city council of said city and without any approjpriation ever having been made therefor; that said alleged contract between the said Board of Purchase of said city of Columbus and the said Kokomo Foundry & Machine Company was and is not the contract of the city of Columbus, Ohio; and that, [45]*45having been made by the said Board of Purchase without any authority of any kind whatsoever and without any appropriation therefor, as aforesaid, said alleged contract was and is of no binding force or effect and was and is wholly illegal and void.

“This defendant says that at the time it executed said alleged writing styled a bond, dated September 28, 1916, as aforesaid, there was in fact no valid, binding or enforcible contract or agreement between the city of Columbus and the said Kokomo Foundry & Machine Company for the purchase, construction, delivery or erection of said 500 horsepower Underfeed Stokers or for any other purpose because of the facts and reasons hereinbefore set forth; that' said writing styled a bond, dated September 28, 1916, as aforesaid, related only, and was intended to relate only, to the said paper writing between the plaintiff and the said Kokomo Foundry & Machine Company; that said paper writing, the performance of which it was intended to insure and cover, was and is in fact invalid, illegal, void and of no force or effect, and that therefore the said writing styled a bond, dated September 28, 1916, is itself a nullity, illegal, void, and of. no binding force or effect whatever.”

The surety company by its answer thus raises the legal question as to whether or not the Board of Purchase of the city of Columbus had the legal authority to make the contract with The Kokomo Foundry & Machine Company.

The city of Columbus demurred to the second defense of the answer upon the ground that the averments of such answer do not constitute a defense.

[46]*46This demurrer was overruled in the lower court, and the city not desiring to plead further, final judgment was rendered.

From such judgment plaintiff in error prosecutes error to this court.

The demurrer admits the allegation in the second defense of the answer that the city of Columbus never received any authority from the city council to enter into this contract, and also admits that the city Board of Purchase advertised for bids, awarded the contract, and accepted the bond, without any action having been taken by council, and without any appropriation having been made therefor.

The demurrer also admits that nothing was done by the contractor under the said contract except to furnish the bond in question, and that the city made no payment on account of such contract.

Section 162 of the charter of the city of Columbus provides:

“When any expenditure in any department other than the compensation of persons employed therein, exceeds five hundred dollars, it shall first be authorized and directed by ordinance of the council. When so authorized and directed, the proper board or officer shall make a written contract in strict accordance with the terms and conditions of the ordinance, with the lowest and best bidder.”

Section 162 of the Columbus charter is similar to Section 4328, General Code.

Section 142 of the Columbus charter creates a Board' of Purchase, and provides that such board shall make all purchases for the city in the manner provided by ordinance.

[47]

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11 Ohio App. 42, 31 Ohio C.C. (n.s.) 26, 31 Ohio C.A. 26, 1918 Ohio App. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-columbus-v-chicago-bonding-surety-co-ohioctapp-1918.