George v. Wyandotte Electric Light Co.

62 N.W. 985, 105 Mich. 1, 1895 Mich. LEXIS 783
CourtMichigan Supreme Court
DecidedApril 16, 1895
StatusPublished
Cited by25 cases

This text of 62 N.W. 985 (George v. Wyandotte Electric Light Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George v. Wyandotte Electric Light Co., 62 N.W. 985, 105 Mich. 1, 1895 Mich. LEXIS 783 (Mich. 1895).

Opinion

Long, J.

These cases were heard together in the Wayne circuit court in chancery, and are both here on appeal.' We shall refer to them as the “George case” and the “Campbell case.” The pleadings in each case are here, but there is but one record, which substantially contains all the testimony in reference to each case. The cases involve the validity of two contracts made by the city of Wyandotte, one with the Western Electric Company, of Chicago, for the construction of an electric light plant for the city, and the other with the Wyandotte Electric Light. Company for lighting the city for the period of five years.

It appears that in 1891 the Wyandotte Electric Light Company, a local company, was engaged in lighting the city under a contract which would expire February 1, 1898. Prior to the last-named date, such proceedings had been had that a' contract was let by the city to the Western Electric Company to build for it a plant of its own for the sum of $11,937, one-half to be paid on delivery of the apparatus on the ground. The mayor and city clerk were directed by [3]*3resolution of the council to issue bonds of the city for the sum. of $12,000. These bonds were issued and sold, and the proceeds directed to be deposited with the city treasurer, and on February 20, 1893, the city treasurer paid to the Western Electric Company the sum of $5,-901.50. On March 1, 1893, the council declared all the proceedings to have a plant built irregular and void, and by resolution vacated and set aside such proceedings, and accepted a bid from the Wyandotte Electric Light Company to light the city for five years from that time.

The bill is filed in the George case by Mr. George and some 20 or more others, tax-payers and electors of the city of Wyandotte, against the Wyandotte Electric Light Company and the mayor, clerk, treasurer, and aldermen of the city of Wyandotte, to restrain them from carrying out the contract with the Wyandotte Electric Light Company, and to restrain the payment of any money thereunder, and that the officers and the common council of the city be directed to recognize the contract made with the Western Electric Company as legal and in full force, and to audit, allow, and pay all moneys due under said contract according to its terms. The Wyandotte Electric Light Company answered, setting up that the contract with the Western Electric Company was void, and that the contract with the Wyandotte Electric Light. Company was a valid and binding one upon the city and its officers.

In the Campbell case, the bill is filed by Mr. Campbell and others, residents, citizens, and tax-payers of the city, against the city of Wyandotte, the mayor, clerk, treasurer, and aldermen, and the Western Electric Company. This second bill sets up the regularity of the proceedings to the making of the contract with the Wyandotte Electric Light Company, and asks to have that contract enforced; and also asks to have the contract with the Western Electric Company declared void by reason of certain irregularities and illegalities in the proceedings [4]*4on the part of the city council, and in the proceedings of the electors’ meeting by which the council was authorized to bond the city to raise money for building the plant. An injunction is asked restraining the Western Electric Company from completing the plant, and restraining the officers of the city from paying any more money to it for that purpose, and that the Western Electric Company and the officers of the city account to the city for the moneys the Western Electric Company has already received. The city and the Western Electric Company answered.

The causes being at issue, the testimony was taken in ojien court, and a decree entered in each cause. In the George case the court decreed, substantially, that the officers of the city refrain from paying any money to the Wyandotte Electric Light Company, and- declared that contract void. In the Campbell case the court declared the contract of the Western Electric Company void, and also directed that the city refrain from paying any more moneys thereunder. It was further provided in that decree as follows:

“That the decree shall be without prejudice to the rights of the city of Wyandotte or the Western Electric Company to bring suit against the other in relation to the purchase money of said electric light plant, or the money heretofore paid to said Western. Electric Company on account of said pretended contract.”

From this decree in the George case the defendant the Wyandotte Electric Light Company appeals. In the Campbell case the complainants appeal. The Western Electric Company and the city do not appeal.

The only contention in the Campbell case is that the court, in declaring the contract of the Western Electric Company void, should have compelled that' company and the mayor, clerk, and treasurer of the city to -enter into an accounting with the city for the moneys the Western Electric Company had received from the officers of the city illegally, and required the Western Electric Com[5]*5pany and the mayor, clerk, and treasurer of the city to pay over any money found due the city on such accounting; and that the court was in error in remitting the parties to their action at law. We shall consider this subject first. Iu this case the complainants pray that the money be repaid into the treasury, in order that the money ma.y be a fund to meet the bonds when due, if valid by reason of being in the hands of bona fide purchasers, or otherwise. The court below found the contract between the city and the Western Electric Company void, and the city officers and the Western Electric Company have not appealed. The complainants in that case, however, do appeal, upon the ground that the court should have awarded an accounting between the city and the Western Electric Company. The only question, therefore, which we need consider on this appeal, is whether the Wrestern Electric Company shall so account. The facts were all before the court. It had full jurisdiction of the parties and the subject-matter, and, the contract being void, the Western Electric Company had in its possession a sum of money illegally and wrongfully paid by the city officers without warrant of law. There is no dispute about the amount. It is the sum of $5,961.50, and it was paid on February 20, 1893. For this amount the Western Electric Company must account in this action to the city, with interest at 6 per cent, from February 20, 1893. The principle that equity, having once acquired jurisdiction, will retain it to give such full relief as will finally dispose of the controversy, is well settled. Whipple v. Farrar, 3 Mich. 436; Miller v. Stepper, 32 Id. 194; Wallace v. Wallace, 63 Id. 326; Drayton v. Chandler, 93 Id. 383, 388; In re Petition of Axtell, 95 Id. 244; Chase v. Boughton, 93 Id. 285. The tax-payers of the city who file this bill are proper parties to. a suit to enjoin the city from illegally disposing of the corporate funds, or illegally creating a corporate debt. McCoy v. Briant, 53 Cal. 247; Withington v. Inhabitants of Harvard, 8 Cush. 66; [6]*6Mayor, etc., of Baltimore v. Gill, 31 Md. 375; Merrill v. Plainfield, 45 N. H. 126; 10 Amer. & Eng. Enc. Law, p. 963, and note. We think there is no sufficient ground shown to hold the officers of the city to the payment of this fund. The Western Electric Company had the money under an illegal and void contract, and must account for it.

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Bluebook (online)
62 N.W. 985, 105 Mich. 1, 1895 Mich. LEXIS 783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-v-wyandotte-electric-light-co-mich-1895.