Fergus v. City of CoLumbus

6 Ohio N.P. 82

This text of 6 Ohio N.P. 82 (Fergus v. City of CoLumbus) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fergus v. City of CoLumbus, 6 Ohio N.P. 82 (Ohio Super. Ct. 1898).

Opinion

Pugh, J.

This is a taxpayer’s action, — an ao[83]*83tion authorized by sections 1777 and 1778, of the Revised Statutes. These statutes permit a taxpayer, who observes a misapplication of the funds of the city, of which he is a taxpayer, or the abuse of its corporate powers, or the execution or performance of any contract made in its behalf, which contravenes any law or ordinance, to appeal to court for an injunction restraining such acts, the city solicitor having declined to bring the suit. This right of action is similar to the right of action which the stockholders of a private corporation possess without the aid of a statute. 20 Abbott’s New Cases, 431.

The plaintiff in.such an aotion as this, is entitled to relief when he has made out a case within the statute, although it may not satisfy the principles and rules of equity jurisprudence and procedure.

Before this statute was enacted, a taxpayer had nc remedy for the preservation of municipal property.

The duty of courts is to construe the statute with liberality that the remedy may be advanced, as it is in the construction of all statutes, passed to prevent wrongs and frauds.

Every pecuniary interest and right cf the municipality, which could be misapplied or misappropriated by the unauthorized or wrongful act cf municipal public servants or agents to the loss or wrongful injury cf the municipality, or taxpayer, is included within the scope of these statutes. Its words “embrace not only property and i funds in possession, but the credit and power of taxation and borrowing money, in anticipation of taxation,” and also every process and means by which the municipality can be charged pecuniarily or the taxable property within its limits burdened.” Ayers v. Lawrence, 59 N. Y., 192.

To enable the plaintiff to maintain the action, is he obliged to show any substantial injury to the municipality? Or to any taxpayer? Will itnot suffice if he proves a mediated, a threatened illegal official act? Warren v. Baldwin, 103 N. Y., 34.

These statutes can not be used to subserve a mere private, secret, purpose of the person who brings the suit, or of any third person. To illustrate, when the bone of contention is touching a contract awarded by the municipal corporation to one of several competitors, a suit prosecuted nominally by a taxpayer, but in reality to help a disappointed competitor for the contract, would be a gross abuse of the rights conferred by the statute, and ocurts will refuse to exercise the jurisdiction when that fact is shown. Hall v. Ely, 2 Abb. (N. C.), 440.

Under a statute exactly similar to ours, but more comprehensive,a court refused to issue an injunction against the sale of a ferry franchise, because it appeared that the real parties in interest as plaintiff, were the persons who were then exercising the franchise,, and because the object of the snit was¡ to protect themselves m the enjoyment of the right. See Lutes v. Briggs, 64 N. Y., 404.

There is manifest good sense and wisdom in giving this construction to the statutes of this state, because the remedy of mandamus is accorded to the bidder who is wrongfully deprived of the contract.

Again, it may be said, by way of illustration, that a suit prosecuted merely to gratify the caprice or personal spite of some person, or to have the court settle some mooted question of power in which some one’s pride or obstinacy is interested, would not be authorized by the statute. I do not intend to intimate that this suit belongs to either of these classes, but I havb heard of cases like them, and I simply use that knowledge to illustrate what my construction of the statute is.

The statute does not prescribe who shall be defendants in this sort of action; the ordinary rules as to parties dominate this question. Theivfore, it is hardly necessary to say that all persons and corporations who may be directly effected by the judgment cr decree that may be rendered are essential, indispensable, parties to a complete determination of' the controversy. Is not the Holly Company an indispensable party, to this suit? [84]*84Osterhaudt v. Supervisors of Ulster, 98 N. 1., 239.

There is another preliminary observation touching the purprose of the statute that is pertinent.

From all officers of a municipal ■corporation, the law expects and exacts the same degree cf fidelity, care and caution,as would be expected from an individual, in regard to his private affairs. The failure of municipal officers to observe this requirement, was probably the inspiration of the statute’s enactment. The obligations imposed upon such officers, were found to be insufficient to keep down expenditures and burdens, and to secure from them a complete and oareful discharge of their duties. To accomplish this end, they were, by this statute, subjected to the restraint and oversight of the taxpayers. If a contract cr purchase is made by such an officer, he is required to employ the same diligence, skill, wisdom and fidelity, that would be expected, if he was making a oontract or purchase for himself. Therefore, it is, that for a mere error of judgment, involving no greater difference, than might reasonably exist between persons purchasing property for themselves, a court of equity would not interfere and restrain the purchase.

On December 4th, 1893, the city council, by ordinance, ordered that there should be purchased for use at the West .Side Pumping Station, new pumning machinery according to plans, drawings and specifications on file in division No. 1 of the department of public improvements, or according to plans and specifications to be fully set forth in the bid therefor” and that the direotor of that department be authorized to advertise for bids, according to law. It was ordained that the entire cost and expense for the pumping machinery should be paid from the water works fund of said city, provided the same shall not exceed $125,000.00 the estimated cost thereof”.

Futther, the ordinance requires all bids to b9 submitted to the council for approval. Sealed proposals were advertised for, for the length cf time prescribed by any of the laws which may be applicable.

Three bids were made; one by the Holly Company at $103.000; one by the Blake Company at $100,000.00; one by the Allis Company at $91,000.00.

The bid of the Holly Company was accepted by the board of public works, and the directors of public improvements, enter into a written contract with that company, it agreeing to furnish the pumping machinery, deliver and set it up in its place.

The advertisements, in obedience to the ordinance, required each bid to be accompanied ley plans and specifications for the foundation.

The evidence failed to show any other but the Holly’Oompany complying with that requirement.

The competency and validity of the contract is assailed upon several grounds.

I will endeavor to discuss all of them, and the able arguments and briefs of oounsel have lightened that labor verv much.

It was very earnestly urged that this contract contravened the law; because, the Holly Company, confessedly a foreign or non-resident stock corporation, had net before the contract was made, complied with ths exactions of the statute, passed Aoril 25th, 1893.

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Bluebook (online)
6 Ohio N.P. 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fergus-v-city-of-columbus-ohctcomplfrankl-1898.