Dunham v. Hastings Pavement Co.

67 N.Y.S. 632
Appellate Division of the Supreme Court of the State of New York·Decided December 21, 1900·Published·Cited by 2 cases

Opinion

HATCH, J.

The answer which was served in this case did not plead as a defense that the contract was- illegal, or that the service to be performed thereunder was expected to be in violation of any law, or repugnant to any principle of public policy. It is insisted that the failure to plead that the contract was illegal and void, as being in contravention of good morals or a sound public policy, precluded the defendant from raising such question, and therefore did not furnish basis for the court so to rule. It is undoubtedly the rule that a contract is not necessarily void because the enforcement of rights thereunder may be in violation of a statute. Where the statute is provided for the protection of parties, and the benefit taken thereby may be waived, the defense of invalidity must be pleaded, or the defendant cannot avail himself of it. Crane v Powell, 139 N. Y. 379, 34 N. E. 911; Matthews v. Matthews, 154 N. Y. 288, 48 N. E. 531. The rule is otherwise, however, where the general public is affected by the violation of the particular statute or the provisions of any public law. In such case the enforcement of rights arising thereunder is or may be opposed to good morals or a sound public policy, and the court will refuse their aid to parties so contracting, and will in every instance leave them as it found them. In such a case it is not necessarily essential that the illegality be pleaded. Courts, of their own motion, will interfere and deny the right to any relief thereunder, without reference to the state of the pleadings. Drake v. Seibold, 81 Hun, 178, 30 N. Y. Supp. 697; Oscanyan v. Arms Co., 103 U. S. 261, 26 L. Ed. .539; Kearnes v. Ferry Co., 19 Misc. Rep. 19, 42 N. Y. Supp. 771.

In the present case the learned court below took the view that the contract fell within the second class of cases,—that it was void as being in contravention of a sound public policy,—and for that reason the court would not lend aid to its enforcement. It is evident that, if this view finds support in the testimony, the learned court was clearly right, and the state of the pleadings would not be controlling of its action. This brings us to a consideration of the contract itself, and the acts of the parties thereunder. It is conceded that the contract, upon its face, is not tainted with illegality, nor does any other infirmity appear therein. It is entitled, therefore, to find favor at the hands of the court, unless the proof ■ of acts thereunder is sufficient to establish, as matter of law, that it was a mere cover in legal form for the performance of illegal •acts, and that such was the intention of the parties when it was executed. If it was intended when the contract was executed that under it should be performed what in popular language is called “lobby service,” it is void and cannot be enforced. Mills v. Mills, 40 N. Y. 543; Powers v. Skinner, 34 Vt. 274; Marshall v. Railroad Co., 16 How. 314, 21 Curt. Dec. 153, 14 L. Ed. 953. These lobby services are generally defined to mean the use of personal solicitation, the [635]*635exercise o£ personal influence, and improper or corrupt methods, whereby legislative or official action is to be the product. It is not, however, the doing of the improper act which is the sole test. There must be the contract and intent that it shall be performed. Of course, the doing of the unlawful act is or may be evidence of the intent, and characterize the contract, but it is not necessarily conclusive of it. In Chesebrough v. Conover, 140 N. Y. 382, 35 N. E. 633, the action was brought to recover for services rendered in procuring the passage of a bill by the legislature. The contract was oral, and the question before the court was whether it was a contract for the performance of lobby services. In that mase resort was had to the acts of the plaintiff in order to determine the intent of the parties and the character of the contract. The proof given by the plaintiff upon the trial, and the bill of particulars served therein, as appears from the record in the court of appeals, showed that the plaintiff drew the bill which the defendant desired to have passed by the legislature; that he took it to Albany, and there privately presented it to a member of assembly, who was to, and did thereafter, introduce the same in the assembly, and at the time of delivering the bill to such assemblymen he stated to him that he was directed to say that “if that bill passed he could get what he wanted”; that the plaintiff also saw members of the committee, privately, who had the bill in charge, and urged its passage. After the bill had passed the legislature he wrote to a member of the committee on general laws, who had the bill in charge, urging that he see the governor and request him to sign the bill. The plaintiff also testified that, in the interviews which he had, he urged the passage of the bill upon its merits, and did other service, such as drawing a report of the state engineer, and also resolutions for the common council of Hew York, relating to the bill; and, in respect to the latter, he procured the attendance of the clerk of that body at the plaintiff’s private office, and requested him to urge its passage. In addition to this, it appeared that he wrote letters to the member of assembly who introduced the bill, requesting its passage. There was much service in drawing bills, reports, resolutions, and in consultation with the defendant in respect to the business. In various forms, beginning with the opening of the case, the defendant raised the question that the contract was contra bonos mores, and requested that the complaint be dismissed. The court denied the several motions which were made, and submitted to the jury, as a question of fact, whether the contract called for the rendition of services which the law condemned, charging them that, if they so found, the plaintiff could not recover. The plaintiff had a verdict, and upon appeal the general term of this court affirmed the judgment, which was in turn affirmed by the court of appeals. The latter court, in discussing the question, said:

“If the plaintiff was employed to render what are commonly called ‘lobby services,’ in procuring the legislation desired by the defendant, then he should have been defeated in his action. Such contracts are condemned as .against public policy, and the rules applicable to them are laid down in many decisions. Chippewa Val. & S. Ry. Co. v. Chicago, St P, M. & O. By. [636]*636Co., 75 Wis. 248, 44 N. W. 17, 6 L. R. A. 601; Frost v. Inhabitants of Belmont, 6 Allen, 152; Harris v. Roof’s Ex’rs, 10 Barb. 489; Sedgwick v. Stanton, 14 N. Y. 289. Here the jury could find that the plaintiff was not employed to render, and that he did not render, lobby services. He waS not a lobbyist, and he had no acquaintance or influence with any member of the legislature, and it does not appear that he had any peculiar facilities for procuring legislation. The jury could find from the evidence that he was employed by the defendant to draw legislative bills, and to explain them to members of the legislature, and to procure their introduction into the legislature, and nothing more. It does not appear that he asked or solicited any member of the legislature to vote for the bills, or that he did anything except to explain them and request their introduction; and so much he could do without violating any public policy.

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Dunham v. Hastings Pavement Co., 67 N.Y.S. 632 (N.Y. Ct. App. 1900).

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