Klauder v. Cox

145 A. 290, 295 Pa. 323, 1929 Pa. LEXIS 666
CourtSupreme Court of Pennsylvania
DecidedDecember 5, 1928
DocketAppeal, 274
StatusPublished
Cited by8 cases

This text of 145 A. 290 (Klauder v. Cox) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klauder v. Cox, 145 A. 290, 295 Pa. 323, 1929 Pa. LEXIS 666 (Pa. 1928).

Opinion

Opinion by

Me. Justice Kephart,

The plaintiff instituted an action to recover $40,000 from the members of the city council and the mayor of Philadelphia, as individuals, on a cause of action as follows : In 1923, council appropriated $15,000 to the Philadelphia Civic Opera Company, a private corporation for musical entertainment. The mayor approved the ordinance, and the proper officers paid the money. An appropriation of $25,000 for like purpose was made for the year 1924, and paid in like manner. It is charged that the appropriation of this sum of $40,000 was an unlawful “abstraction” of monies from the public treasury. Plaintiff, in his statement, says he “does not proceed against the city controller or the city treasurer; .they are ministerial officers, having neither jurisdiction nor control over public funds.” This suit is brought by plaintiff as a taxpayer on behalf of himself and other taxpayers of the city.

In 1925 city council made an appropriation similar to that of 1924, but on a taxpayer’s bill averring that the *327 ordinance was unconstitutional and that the object was not within the corporate powers of the city, its officers were restrained from expending the money. The issuance of the injunction was affirmed on the latter ground in Kulp v. Phila., 291 Pa. 413. The only question we are to decide in this appeal by the taxpayer is: Are members of a legislative body and the chief executive personally liable for making an appropriation that is contrary to law?

By this limitation, matters of form and procedure are not considered, and we decide the case in the light that plaintiff sues as and for the City of Philadelphia, in her proprietary capacity, to recover from defendants monies unlawfully spent. Also, we pass the question of laches, and the possibility that plaintiff could have pursued other remedies to test the right to appropriate the money. There is in this State injunctive relief to prevent officers from taking action under invalid laws (Germantown Trust Co. v. Auditor General, 260 Pa. 181) and mandamus to compel an officer to comply with an alleged invalid law (Com. v. Mathues, 210 Pa. 372) and, at the present time, the Declaratory Judgment Act.

The general subject of municipal ordinances for the general welfare, as they may relate to the land and their charters, are similar to laws generally as limited by the Constitution, and will be so treated in this discussion.

To avoid any confusion as to the result of our decision in this case, since this question concerns the personal liability of a class of officers for official acts, it is necessary to call attention to the trend of judicial thought, as expressed by the rule that our courts have adopted requiring statutory authority, either in express terms or by necessary implication, for all claims upon the public treasury, (Wayne Co. v. Waller, 90 Pa. 99) and, where money has been paid unlawfully, holding those responsible for the payment personally liable: The Commissioners v. County of Lycoming, 46 Pa. 496. See In re School District of Mauch Chunk Twp., 75 Pa. Superior *328 Ct. 434, 438. Statutory authority exists by necessary implication where duties are enjoined that can be performed only by money payment: Hoak v. Lancaster Co., 29 Pa. Superior Ct. 585, 587. Similar rules exist in other states.

The above rules are necessary because of our varied systems of government. They relate to government agencies, exercising. administrative or ministerial powers, or both, as, for example, a county, a township of the second class, a school district, and the like, whose duties and obligations are outlined by statute. Similar rules control the acts of those subordinate officers created by the legislature for its various agencies such as cities, boroughs, etc., whose duties and the method of their accomplishment are outlined in the specific directions of the legislature; e. g., the letting of contracts, etc.

Whether an ordinance passed by city council, held unconstitutional (and in that respect it would be no different from an Act of Assembly: Davis & Farnum Mfg. Co. v. Los Angeles, 189 U. S. 207, 23 Sup. Ct. 498, 47 L. ed. 778), would protect officers subordinate to council, is not here open for discussion. The pleadings have specifically excluded the treasurer and controller. Our question is divorced from any of the problems which affect the conduct or acts of those subordinate to, or controlled by, the ordinances and laws of a municipality. We might point out, however, in passing, that this court has held that a municipal officer, in obeying an unconstitutional act, incurs no personal liability where property rights are damaged or destroyed: Dunn v. Mellon, 147 Pa. 11. Whether this case would be extended to such officers in other matters will be determined when they appear.

We are here concerned with such agencies as corporations, possessing municipal or quasi-municipal power with modified governmental authority. This legislative authority so granted may be small in some instances, or *329 greater, as in cities, but where the State has seen fit to create this legislative power, then, within the sphere of the power so created, and over the territory designated, the legislation of the municipality is as potential as if enacted by the supreme power. Of course it may not conflict with a statute or the state Constitution.

When performing these legislative acts, the councils, within their modified spheres, stand in the same relation to the result of their acts as do the legislature, the Congress and the members thereof. It would be a strange proposition for any court to advance as a theory of government that the members of Congress and of the legislature are personally responsible for the result or effect of an unconstitutional law passed by them before those laws have been held invalid by the courts. It has been suggested, not without reason, that the State or the city, in its corporate capacity, should bear the loss that comes from the execution of acts before they have been declared unconstitutional. Pennsylvania has so decided as to property rights. See Dunn v. Mellon, supra, p. 17.

To hold those who compose legislative bodies personally liable for acts free of fraud or corruption would measurably weaken the structure of our form of government if it would not destroy its very existence. There should be absolute freedom to act in legislative matters so that vigorous action may be taken when necessary, for the public welfare, without fear of being called on for vindication or explanation, leaving to the courts the function of determining whether such acts transgress the fundamental law. Nor, in the interest of freedom of action, may we hold, as is frequently done with subordinates, that these officers are presumed to know the Constitution, and, if they violate it by passing an act which is contrary to the Constitution, they do so at their peril. The peril that would follow such a course would affect society generally. If this were the rule, it would have taken rare courage on the part of the members and chief executive who enacted the first prohibition, anti- *330 saloon or anti-liquor law.

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Cite This Page — Counsel Stack

Bluebook (online)
145 A. 290, 295 Pa. 323, 1929 Pa. LEXIS 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klauder-v-cox-pa-1928.