City of Greenville v. Queen City Lumber Co.

86 So. 2d 860, 227 Miss. 749, 1956 Miss. LEXIS 749
CourtMississippi Supreme Court
DecidedApril 23, 1956
DocketNo. 40039
StatusPublished

This text of 86 So. 2d 860 (City of Greenville v. Queen City Lumber Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Greenville v. Queen City Lumber Co., 86 So. 2d 860, 227 Miss. 749, 1956 Miss. LEXIS 749 (Mich. 1956).

Opinion

Arrington, J.

The appellee, Queen City Lumber Company, a corporation, filed bill of complaint against the City of Green-ville, appellant, in the Chancery Court of Washington County seeking to recover $3,849.80, with interest at six percent from January 3,1952. From a decree for the appellee in the amount sued for, with six percent interest from August 10, 1954, the city appeals and the lumber company cross-appeals, contending that it was entitled to interest from January 3, 1952. Briefly, the facts, which are not in dispute, are as follows:

The appellee was the owner of McCorkle Subdivision located in the City of Greenville, and being without sewerage, was desirous of developing said subdivision. Through its president, J. L. McCorkle, it applied to the city council on March 20, 1951 for the installation of sewer mains in said subdivision. At that time, it was admitted that the city was without funds to pay the costs of the installation of the sewer mains, and Mc-Corkle proposed and agreed with the city that if the city would install the sewer mains in said subdivision under the supervision of the city engineer and in accordance with specifications to be provided by him, the lumber company would pay the costs thereof, which costs the city would repay to the lumber company when the houses were constructed on the lots comprising said subdivision and assessed for taxes. The order was duly entered on the minutes of the city council on March 20, 1951. On April 3, the city’s attorney advised the council that the proposed agreement with the lumber company was illegal; whereupon the city council authorized the mayor [756]*756to notify the lumber company that the city could not proceed under the proposed agreement. The notice was accordingly given, in writing, to the lumber company on April 5, 1951. Later, during July and August, the sewer mains were installed by the city engineer and the costs thereof paid by the lumber company. On November 6, 1951, the city council entered an order to refund the lumber company the amount spent on the sewer mains. On January 3, 1952, the city engineer reported to the city council that there was due and owing to the lumber company $3,849.80, the cost of installation of sewerage in McCorkle Subdivision. On August 3, 1954, the lumber company filed claim for the refund; the council denied the claim, which resulted in the filing of this suit.

The appellant contends, first, that the agreement of March 21, 1951 was illegal and void under the provisions of Section 57 of the charter of the City of Green-ville (Acts of 1886, page 536), and, second, the agreement being illegal and void for the reason that it was beyond the city’s power to execute and being especially prohibited by the charter provision could not be subsequently ratified.

Section 57 of the charter of the City of Greenville is as follows: ‘ Sec. 57. Be it further enacted, That it shall be unlawful for said city council, the mayor, or the clerk thereof, to order to be issued or to issue any warrant or order on the city treasurer for the payment of money, or in any other manner to contract any debt or pecuniary liability, unless there is in the hands of the treasurer at said time, and that may be properly applied to the payment of said warrant, a sufficient amount of money to pay the same; and should any of the foregoing persons violate the provisions of this section, unless misinformed by the treasurer, he shall be deemed guilty of a felony, and shall be punished, on conviction thereof, by fine.....”

[757]*757This section of the charter was construed by the Court in the case of Greenville v. Laurent, et al, 75 Miss. 456, 23 So. 185. There the Court held that a contract for the purchase of lands by the City of Greenville was illegal and void under Section 57. The Court said: “It is declared unlawful for the council, or any of the officials, in any other manner, to contract any debt or pecuniary liability unless likewise there be in the treasurer’s hands at the time, and that may properly be applied to its payment, a sufficient sum of money to pay the same. ’ ’

As to the purpose of the provision, the Court further said: “It seems clear to us that the purpose of this section was to - put the municipality upon a cash basis, by forbidding warrants or orders for the payment of money to be issued, or debts and pecuniary liabilities to be contracted unless the money was, at the time the warrant or order was issued or the debt or liability was contracted, on hand with the treasurer in sufficient amount to then pay the warrant or order or satisfy the debt or pecuniary liability. . . . But if the municipality is not thus clearly forbidden to plunge the city into debt, and to us it seems that it is, it is nevertheless true that if there is doubt as to the legislative grant of power to contract debts, the doubt must be resolved against the exercise of the doubtful grant of power. The charters of municipal corporations, like those of other corporations, are not to receive a latitudinarian construction. ’ ’

In the case of Edwards House Co. v. City of Jackson, 132 Miss. 710, 96 So. 170, in construing a similar provision of chapter 326, Laws of 1920, Section 4321 of the Code of 1942, the Court held that a contract between the Edwards House and the City of Jackson was illegal and void, “because no indebtedness can be incurred by any municipality when there are insufficient funds in the particular fund which must be drawn upon to pay the contract or indebtedness incurred.”

[758]*758 The agreement being illegal and void, it was not susceptible of ratification. Paine v. Matthews, 213 Miss. 506, 57 So. 2d 148. Cf. Town of Magee v. Mallett, 178 Miss. 629, 174 So. 246. We are of the opinion that the contentions of the appellant are well taken and that the City of Greenville was without power to enter into said contract at a time when it was admitted that there were no funds in the treasury.

The appellee contends that Section 4321, supra, which provides that “no warrant shall be issued or indebtedness incurred by any city or municipality unless there is sufficient money in the particular fund from which the allowance is or must be made to pay such warrant or indebtedness, ’ etc., was repealed by Chapter 241, Section 16, Laws of 1950, and that the repeal of this general statute was applicable to all municipalities and was a repeal of Section 57 of the charter of the City of Greenville. We do not agree. In the case of Mayor, et al v. Streckfus Steamers, 167 Miss. 856, 150 So. 215, the Court said: “General acts do not ordinarily repeal the provisions of charters granted municipal corporations, unless such repeal is in express language or by necessary implication. 1 McQuillin on Municipal Corporations (2d ed.), pp. 436-437.”

The appellee next contends that even if the charter provision was not repealed, it has no application to the indebtedness involved in this case, citing Section 3374-129, Code of 1942, which gives the governing authorities of municipalities the power to exercise full jurisdiction in the matter of streets, sidewalks, sewers, etc. The appellee relies on the cases of Choctaw County v. Tennison, et al, 161 Miss. 66, 134 So. 900, and City of Louisville v. Chambers, 190 Miss. 833, 1 So. 2d 771.

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Related

Mayor of Vicksburg v. Streckfus Steamers
150 So. 215 (Mississippi Supreme Court, 1933)
City of Greenwood v. Provine
108 So. 284 (Mississippi Supreme Court, 1926)
Choctaw County v. Tennison
134 So. 900 (Mississippi Supreme Court, 1931)
City of Louisville v. Chambers
1 So. 2d 771 (Mississippi Supreme Court, 1941)
Town of Magee v. Mallett
174 So. 246 (Mississippi Supreme Court, 1937)
City of Greenville v. Laurent
75 Miss. 456 (Mississippi Supreme Court, 1897)
Edwards House Co. v. City of Jackson
96 So. 170 (Mississippi Supreme Court, 1923)
Paine v. Matthews
57 So. 2d 148 (Mississippi Supreme Court, 1952)

Cite This Page — Counsel Stack

Bluebook (online)
86 So. 2d 860, 227 Miss. 749, 1956 Miss. LEXIS 749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-greenville-v-queen-city-lumber-co-miss-1956.