Hancock v. Village of Hazel Crest

47 N.E.2d 557, 318 Ill. App. 170, 1943 Ill. App. LEXIS 849
CourtAppellate Court of Illinois
DecidedMarch 22, 1943
DocketGen. No. 42,297
StatusPublished
Cited by2 cases

This text of 47 N.E.2d 557 (Hancock v. Village of Hazel Crest) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hancock v. Village of Hazel Crest, 47 N.E.2d 557, 318 Ill. App. 170, 1943 Ill. App. LEXIS 849 (Ill. Ct. App. 1943).

Opinion

Mr. Presiding Justice Matchett

delivered the opinion of the court.

Plaintiff is a civil engineer. He sued to recover from the defendant, a municipal corporation, $13,340, as the reasonable value of services rendered by him to the defendant in connection with the proposed construction of a new sewage system or remodeling defendant’s old system. The cause was heard by the court on the pleadings and a stipulation by the parties as to the facts. There was a finding for defendant with judgment thereon, and plaintiff appeals.

It appears that it was the contemplation of the parties that the proposed improvement would be made pursuant to section 62 of the Cities and Villages Act (Smith-Hurd’s Ann. Stats., ch. 24, §§ 62 — 1 to 62 — 12 [Jones 111. Sta^s. Ann. 21.2029 to 21.2040]). The section in substance provides that a municipality may by compliance therewith construct a sewerage system and pay for the same out of revenue bonds which are limited in payment to revenues to be derived from the improvement itself. Plaintiff contends (and, as we understand it, the defendant does not deny) that had this plan been carried out, no additional debt within the meaning of section 12, article 9 of the Constitution of Illinois would have been created. The act, however, provides that after publication or. posting of the ordinance providing for such an improvement, if no petition is filed with the municipal clerk for an election, the ordinance shall be in effect. But if within 10 days a petition is filed with the clerk by 15 per cent of the voters at the last general municipal election, the question of constructing or improving the sewerage system as provided in the ordinance and the issuance of the revenue bonds to provide for the payment therefor shall be submitted to a referendum vote of the electors. If a majority of the votes cast on the election are unfavorable the municipality shall proceed no further and the ordinance shall not take effect. Such petition was filed within the time required; the vote was taken; it was against making the improvement, and the Village abandoned it.

At the time the proposed ordinance for making the improvement was passed and when it was abandoned and since, liability on the part of the Village for the amount claimed by plaintiff would create a situation in which the amount of its indebtedness would exceed the constitutional limitation of 5 per cent of the value of the taxable property in the defendant municipality. The assessed Value of all property in the Village for the year 1939 was $503,997. Its debts on September 20, 1939, were over $30,000. The proposed improvement was to cost $296,000.

The stipulation concedes that plaintiff was at all times ready and willing to perform the duties required of him by the terms of his employment and that the ■ reasonable value thereof is the amount he claims. The defense interposed is that the contract under which plaintiff claims was illegal'as creating an indebtedness beyond that permitted by section 12 of article 9 of the Constitution. It is as follows:

“No County, City, Township, School District or other Municipal Corporation shall be allowed to become indebted, in any manner or for any purpose, to an amount, including existing indebtedness, in the aggregate exceeding five per centum of the valué of the taxable property therein, to be ascertained by the last assessment for state and county taxes, previous to the incurring of such indebtedness.”

Notwithstanding, plaintiff argues his right to recover upon the theory, as stated in his brief, that “the defendant having abandoned the project, payments that were to be contingent upon the realization of funds to become available by the carrying out thereof, become by operation of law, payable out of the general fund, and that recovery in such an action in quantum meruit, for the value of services rendered under such a liability imposed by law, is not within the constitutional limitations in regard to the creation of indebted-mess.”

The brief for plaintiff discloses great diligence in the collection of cases which, it is argued, sustain this theory. We deem it unnecessary to analyze many of these cases for the reason that no contention was made in them that the constitutional limitation was applicable. This is true of Gray v. City of Joliet, 287 Ill. 280; Hall v. County of Cook, 359 Ill. 528; Bunge v. Downers Grove Sanitary Dist., 356 Ill. 531, and Elmhurst Bank v. Village of Bellwood, 372 Ill. 204 the principal cases relied on.

There is no doubt of the general rule as stated in McQuillin, Municipal Corporations, Second Edition, Revised, vol. 6, § 2376, ch. 41, p. 34, that “Provisions as to debt limits, apply only to indebtedness which arises ex contractu and do not apply to involuntary liability arising ex delicto. Hence, the fact that a municipality has exceeded its debt limit is no defense to an action based on a tort.” The author, however, goes on to state that it has been held in Pennsylvania that when “the act which is called a tort is done under a contract, and the assumption of the consequent damages is an express term of such contract, we have a perfectly clear case outside of the principle that makes municipalities liable for their wrongful acts, without regard to their indebtedness, and within the constitutional prohibition of a contractual obligation to pay in the future for a consideration in the present.”

The gist of plaintiff’s contention seems to be that liability in quasi contract to suit on a quantum meruit grows out of a liability imposed by law independent of the agreement of the parties and is, therefore, not a voluntary assumption of liability and therefore not subject to constitutional limitation. He argues that because the obligation is created by law independent of the will of the parties, such an obligation is not a debt within the meaning of the Constitution. The nature of quasi contractual liability is discussed by Justice Vickers in Board of Highway Com’rs v. City of Bloomington, 253 Ill. 164.

In Williston on Contracts, Eev. Ed., vol. 1, § 3, pp. 6-10, the author says:

“The expression ‘implied contract’ has given rise to great confusion in the law. Until recently the divisions of the law customarily made coincided with the forms of action known to the common law. Consequently, all rights enforced by the contractual actions of assumpsit, covenant, and debt were regarded as based on contract. Some of these rights, however, were created not by any promise or mutual assent of the parties, but were imposed by law on the defendant irrespective of, and sometimes in violation of, his intention. Such obligations were called implied contracts. A better name is that now generally in use of ‘quasi contracts.’ This name is better since it makes clear that the obligations in question are not true contracts, and also because it avoids confusion with another class of obligation which have also been called implied contracts. . . . It is important to distinguish between quasi contracts and contracts implied in fact, not only because it is desirable for clear theoretical analysis, but also because of the difference in the legal relations which may be involved under a true contract and those imposed by law under the name of quasi contract.

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Bluebook (online)
47 N.E.2d 557, 318 Ill. App. 170, 1943 Ill. App. LEXIS 849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hancock-v-village-of-hazel-crest-illappct-1943.