City of Pauls Valley v. Carter

1925 OK 21, 234 P. 617, 108 Okla. 111, 1925 Okla. LEXIS 105
CourtSupreme Court of Oklahoma
DecidedJanuary 7, 1925
Docket13908
StatusPublished
Cited by2 cases

This text of 1925 OK 21 (City of Pauls Valley v. Carter) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Pauls Valley v. Carter, 1925 OK 21, 234 P. 617, 108 Okla. 111, 1925 Okla. LEXIS 105 (Okla. 1925).

Opinion

MASON, J.

This action was instituted in the district court of Garvin county, Okla., to enjoin the levying of special assessments against the property of plaintiffs to pay for paving certain streets in the city of Pauls Valley, Okla., and to enjoin the collection of any such assessment.

Upon the trial of the case, the court entered a decree adjudging that the proceedings for the construction of the paving and the contract therefor were null and void, and enjoined the levying of the special assessments against the property of the plaintiffs. From such judgment, the defendants, the city of Pauls Valley, its mayor and commissioners, and the paving contractor, have prosecuted this appeal.

The trial court found that the resolution of intention to pave was passed as provided by law, that there were no written protests or objections filed within the time provided *112 by statute, and that the statute was strictly followed in all matters up to the report of the city engineer required by section 4590, Comp. Okla. Stat. 1921; that the city engineer prepared specifications and estimates and filed same with the clerk, tout that he included in said estimates 15 per cent, to cover possible discount on bonds that might be issued in each of the several improved districts; that thereafter notice was given that protests might be filed under the provisions of section 4591, Comp. Stat. 1921, and no protests were filed; that advertisement was made as required by statute, asking forbids on the improvements under the plans and specifications as filed, and that the Standard Paving Company was the lowest and best bidder, and the bid of said company was accepted and a contract thereafter entered into by the mayor and city council Of Pauls Valley with such company; that the resolution provided for in section 4597, Comp. Stat. 1921, was properly passed and published, and at said time and place certain citizens of Pauls Valley met with the mayor and commissioners and I. V. Gray, president of the Standard Paving Company, and quite a discussion took place with reference to what was contained in the estimate, and on which the contract was after-wards entered into; that the said I. V. Gray stated that if any property owner in said district would pay the assessment against the property within 30 days, his assessment would be discounted 15 per cent., and the question came up in said meeting, and was openly discussed, with reference to the including in said estimate of 15 per cent, to cover the possible loss the contractor would suffer by reason of the bonds not being able to be sold at par.

The court thereupon rendered the following ag his conclusions of law:

“First, that the city council, while there is no fraud or no sufficient fraud, has the right to determine, first, as to the necessity of making improvements, and, secondly, as to the apportionment of improvements, made, and the court has no right to consider those matters unless • it be, as suggested above, on the question of fraud, in which event the court may go into it. The court concludes that the including in the assessment the 15 per cent, to provide for1 a possible loss in the sale of the bonds was illegal, and that everything done with reference to the improvements in all of these paving districts was void and of no effect and within the contemplation of the statute.”

The judgment of the trial court was based upon the finding of the court that there was included in the estimate of the engineer 15 per cent, to cover the probable discount on the paving bonds, and that the contractor had knowledge of this fact and entered into the contract upon the basis of a 15 per cent, allowance for the discount on the bonds.

The plaintins m error first urge that the property owner cannot avoid an assessment because the city engineer in estimating the cost of improvements incluaes therein as an element of cost the matter of the value of the bonds to be issued to the contractor in payment of the work; second, the estimate to be filed by the engineer is not to be based solely upon the actual cash cost of the work, and that the contractor, whose bid and contract were within the estimate of the engineer, cannot be deprived of the contract price for his work because the estimate includes an improper item.

The record discloses that the contract was let to the Standard Paving Company, as the result of being the lowest and best bidder, having bid in competition with five other construction companies, one of which was a local company in Pauls Valley. It appears that the bids of said company were below the engineer’s estimate in each of the districts involved. Practically all of the work had been completed when this action was instituted. No evidence was introduced by the plaintiffs tending to show that the Standard Paving Company had anything whatever to do with preparing the engineer’s estimate, or that any collusion existed between the engineer and the construction company. No complaint was made thát the company did not perform its duties under the contracts awarded it by the city for the improvements as therein provided, nor is any) complaint made that the paving laid by said company was not according to- plans and specifications.

The rule is well established in this state that, where the contract for public improvements has been made pursuant to the applicable statutory provisions by the proper city authorities to the “lowest and best bidder,” and is within the engineer’s estimate, and jurisdiction of the subject-matter has been obtained by the proper municipal authorities, and all of the resolutions and proceedings required by law have been regular and bids have been received and the contract let under the notice required, such action of such municipal authorities is final as to the contract price of the work in the absence of fraud, collusion, or mistake. Weaver et al. v. City of Chickasha et al., 36 Okla. 226, 128 Pac. 305: Orr et al. v. City of Cushing et al., 66 Okla. 153, 168 Pac. 223.

Where it affirmatively appears from the *113 record of the proceedings for the letting of a contract for public improvements that all of the jurisdictional steps have been taken upon which the power of the city authorities to contract depends, a contractor, in the absence of collusion or fraud, in entering into a contract to construct such improvement, may rely upon the record of such proceedings, and where such contractor has expended money and labor for the benefit of the property improved under such contract, such property owner cannot defeat the statutory assessment being made by such city authorities for such improvement by proof of extraneous facts tending to establish fraud of which such contractor had no knowledge. Weaver et al. v. City of Chickasha et al., supra; City of Muskogee v. Rambo et al., 40 Okla. 672, 138 Pac. 567; Morrow v. Barber Asphalt Paving Co. et al., 27 Okla. 247, 111 Pac. 198; Brownell Improvement Co. v. Nixon (Ind.) 92 N. E. 693; City of Chicago v. Davis et al. (Ill.) 97 N. E. 700; Tappan v. Long Branch, etc. (N. J.) 35 Atl. 1070.

Section 4590, Comp. Stat.

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Cite This Page — Counsel Stack

Bluebook (online)
1925 OK 21, 234 P. 617, 108 Okla. 111, 1925 Okla. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-pauls-valley-v-carter-okla-1925.