City of West Palm Beach v. H & Q Enterprises, Inc.

4 Fla. Supp. 2d 11
CourtPalm Beach County Court
DecidedFebruary 3, 1982
DocketCase No. M-81-5545-C
StatusPublished

This text of 4 Fla. Supp. 2d 11 (City of West Palm Beach v. H & Q Enterprises, Inc.) is published on Counsel Stack Legal Research, covering Palm Beach County Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of West Palm Beach v. H & Q Enterprises, Inc., 4 Fla. Supp. 2d 11 (Fla. Super. Ct. 1982).

Opinion

JAMES T. CARLISLE, County Judge

The issue in this case is whether a contract with a municipality is void by reason of the municipality’s failure to comply with formal requisites imposed by charter or statue. More particularly the question is whether a municipality can avoid its obligation under such a contract.

The city and I & R entered into a contract, dated February 9, 1976, giving defendant the exclusive right to run a concession at plaintiff’s West Palm Beach Municipal Auditorium from October 1, 1975, through [12]*12September 30, 1980. I & R Enterprises was the low bidder. I & R had the right to extend the contract an additional five years through September 30, 1985, and, in fact, did so.

The city, acting through its Commission, approved the agreement by Resolution No: 8-76 passed February 9, 1976.

The West Palm Beach City Charter (Chapter 65-2381, Special Laws of Florida, 1965, as amended) provides at Sec. 3.09 that “. . . enactment of an ordinance shall be the sole method of action by the city commission ... in granting, renewing, or extending a franchise encumbering, or pledging real property owned by the city . . .”.

The agreement between the city and I & R grants a franchise to H & Q and is a lease for a term exceeding five years.

In support of the motion for summary judgment the city relies on Brown v. City of St. Petersburg, 111 Fla. 718, 153 So. 141 (1933); Ransey v. City of Kissimmee, 139 Fla. 107, 190 So. 474 (1939); and Cook v. Navy Point, 88 So. 2d 532 (Fla. 1966). In Brown, supra, the city manager entered into a contract on behalf of the city for the publication for certain books. The charter provided that the city manager could make purchases for the city in the manner provided by ordinance. The purchase of the books was authorized by resolution. The Supreme Court held the contract was void unless the city manager was authorized by ordinance; and that persons dealing or contracting with municipal corporation must, at their peril, inquire into the power of the corporation or its officers to make the contract contemplated.

In Ramsey, supra, the charter provided that the city commission could make contracts to be expressed by ordinance or resolution. There was no motion, resolution, or ordinance. At a commission meeting one of the commissioners told the city attorney to examine the contract and, if it was all right, give it to Ramsey. The attorney made some changes and did re-submit the contract to the commission. The Court held that even if the mayor had authority to bind the city, the contract which was eventually signed was not the contract signed by the mayor. The Court held the contact to be void. The Court noted that Ramsey had been paid $18,616.56 for engineering services in connection with a sewer project and that much of the work done on the sewer project was used on the paving project, which was the subject of the action, without Ramsey doing any additional work. It would have been impossible to determine the amount of work actually done on the paving contract exclusive of all other work. The paving was never done because bond market went down and the city could not realize enough from the sale of bonds in order to do the work. The Court also noted that Ramsey’s remedy, if any, was on quantum merit, and not on the contract.

[13]*13In Cook v. Navy Point, supra, Cook was a taxpayer who brought suit for an accounting to determine the amounts due by Navy Point and other corporations to the City of Ormond Beach. The city, in order to induce Navy Point, Inc. to construct a housing project, agreed to waive fees on building, plumbing and electrical permits. There was no written record of the agreement. The Court held that if such an agreement existed it was void because under the city charter it could have been entered by ordinance, resolution or written contract.

None of these cases stand for the proposition that a city can avoid its obligation under a contract by urging its own fault in failing to adhere to legal formal prerequisites. In Brown, supra, we have simply a contract between the city manager and a bookseller. Navy Point, supra, is a suit by an aggrieved citizen to set aside an agreement between a municipality and another party. There was no written agreement, only an oral agreement at best.

These cases were brought by plaintiffs to set aside agreements between a municipality and another for failure to comply with formal prerequisites.

“It is one thing for an aggrieved citizen to seek to have set aside an agreement between a government and another party because of Sunshine Law violations; but quite another for the government entity itself to seek to escape its obligations based upon its own alleged wrongdoing. It has long been recognized to be unethical for a lawyer to attack his own work product. It is at least immoral and an indication of lack of integrity for a government or its agency, whose duty it is to serve not subvert its citizens, to do the same.” Killearn Prop., Inc. v. City of Tallahassee, (1 DCA 1979), 366 So.2d 172 (cert. denied).

In each the formal aspects fall far short of even a resolution by the full commission. Ramsey likewise falls far short. B contract, signed by the mayor, later modified by the city attorney,. is attempted to be enforced. Even if the contract was valid, it was impossible to determine the damages and the Court, even then, holds out the hope of quantum merit.

In Ogdon City v. Bear Lake and River Waterworks and Irrigation Co., (Utah Supreme Court 1904) 76 Pac. 1069, the city had inadequate waterworks. Bear Lake built a new one under contract with the city. Six years after completion and hook up of the new water system the city sued to have the contact declared void and it named as owner of the waterworks, on the ground that the contract was made by resolution rather than ordinance. The Utah Supreme Court held that the city was estopped to assert approval by resolution rather than by required [14]*14ordinance when it accepted the benefits of the contract. In San Francisco Gas Co. v. San Francisco, 1858, 9 Cal. 453, 470, Justice Field, later of the United States Supreme Court, said:

“The obligation to do justice rests equally upon it (the municipality) as upon an individual. It cannot avail itself of the property or labor of a party, and screen itself from responsibility under the plea that it never passed an ordinance on the subject.”

In Killearn Prop., supra, the City of Tallahassee had a surplus of electricity. Killearn wanted to furnish utility services to a sub-division it was constructing. At the time, Killearn was negotiating with Talquin Electric, a competitor of the city in the electric business. An agreement was reached betweem Killearn and the city whereby the city agreed to furnish one free street light for each $1,000.00 of utility revenue received annually. The agreement was adopted and ratified by the city. The evidence was conflicting as to whether the agreement was ever approved by the City Commission in an open meeting. The city and Killearn operated under the agreement for some years. The city received substantial income from electricity distributed in the Killearn sub-division. In 1974 the city notified Killearn that they would begin to charge for the street lights.

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Related

City of Homestead v. RANEY CONST., INC.
357 So. 2d 749 (District Court of Appeal of Florida, 1978)
Killearn Prop., Inc. v. City of Tallahassee
366 So. 2d 172 (District Court of Appeal of Florida, 1979)
OP CORPORATION v. Village of North Palm Beach
278 So. 2d 593 (Supreme Court of Florida, 1973)
Cook v. Navy Point, Inc.
88 So. 2d 532 (Supreme Court of Florida, 1956)
Ramsey v. City of Kissimmee
190 So. 474 (Supreme Court of Florida, 1939)
Brown v. City of St. Petersburg
153 So. 140 (Supreme Court of Florida, 1933)
San Francisco Gas Co. v. City of San Francisco
9 Cal. 453 (California Supreme Court, 1858)
O. P. Corp. v. Lewis
266 So. 2d 676 (District Court of Appeal of Florida, 1972)

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4 Fla. Supp. 2d 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-west-palm-beach-v-h-q-enterprises-inc-flactyct50-1982.