Lainhart v. Burr

49 Fla. 315
CourtSupreme Court of Florida
DecidedJanuary 15, 1905
StatusPublished
Cited by15 cases

This text of 49 Fla. 315 (Lainhart v. Burr) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lainhart v. Burr, 49 Fla. 315 (Fla. 1905).

Opinion

Carter, J.

(After stating the facts.)

The jurisdiction of a court of equity to entertain a bill for injunction and accounting such as was filed in this case is not questioned. Neither is a question presented as to the sufficiency of the allegations of the bill to obtain the relief prayed. One of the principal questions involved and argued is, whether county commissioners may through employes selected by them purchase from mem»bers of their body or from firms in which such members are partners, supplies to> be used for county purposes, audit and approve the accounts and pay for same by warrants drawn on coitaty funds. The law does not permit a trustee or an agent to make contracts with himself regarding the property committed to llis charge, and this on grounds of public policy. Neither does it permit him to so conduct himself with respect to his trust, as to create a contract by implication with himself. The temptation to abuse his trust and to benefit himself to the detriment of the trust property is too great to permit him to thus deal with it. In such dealings he can not act impartially, for self interest will prompt a one-sided view, inclining him to adopt that course which will benefit him individually. To permit him to buy from himself, puts him in the attitude of being a judge in his own cause, and of attempting to serve two masters whose interests are diametrically opposed. The law does not denounce such conduct on the theory that fraud or wrong inevitably results, but because it may and probably will result, hence proof that no wrong was intended or committed and that no fraud resulted in a particular case does not render the contract valid. The lafw frowns upon and denounces such conduct in every case, and the principal or cestui que trust is given a remedy by which all such transactions [326]*326shall be set aside if he so desires. The same principle applies to officers of private corporations as well as to public' officers. If a public officer having power to purchase supplies, contracts with himself to supply them, the contract is void, no action can be maintained for the contract price, and even though the amount specified in such contract were audited and a warrant drawn to pay it, a court of equity will enjoin such payment at the suit of taxpay- , ers. With respect to county commissioners the principle has peculiar application. While the range of their powers is limited they are necessarily invented with large discretion to be exercised in the execution of such powers as are conferred upon them, and a sound public policy requires that none of the principles with which the law safeguards the conduct of agents and trustees, should be relaxed in respect to this class of public officers. It is, therefore, highly improper that the commissioners or purchasing agents employed by them should purchase supplies from members of the board or from firms in which they are partners, especially where the commissioners themselves audit the bills. Some of the transactions shown in the present case grossly violate this rule of public'policy and justly deserve severe condemnation at the hands of the law. The county commissioners appointed as supervisor of convicts a man who was a partner in business with one of their number. This supervisor had authority to purchase supplies, and purchased, them of the firm composed of himself and a commissioner, whose duty it was to audit and approve the accounts for same. This was highly improper and can not be tolerated under any rule of public policy. The public is entitled to the unbiased judgment and discretion of the commissioners and of the supervisor as to the necessity for and the quantity and quality of supplies proposed to be purchased, but if [327]*327the supervisor may buy from a firm composed of himself and a-commissioner there is great danger that articles may be bought when not needed, and that the judgment and discretion of the supervisor and the commissioner may be warped by self interest, to the great detriment of the public. According to the evidence the firms in which county commissioners were partners supplied from fifty to eighty per cent, of the supplies purchased for the county. The fact that no coercion was used to induce such purchases has little weight in cases where, as here, all the purchasing agents were employed by the county commissioners and could be discharged by them, at any time, and one of such agents was a partner with a commissioner in a firm from whom he purchased supplies. Almost all the authorities hold that transactions such as are here disclosed are condemned as being opposed to public policy, even though no statute forbids them, and we are, therefore, constrained to hold that such is the law in this State.

The defendants alleged in their answers and produced testimony tending to prove that no actual fraud was perpetrated or intended against the public in the transactions complained of in the bill; that the supplies purchased had been actually used for the benefit of the county, and it is contended that as the commissioners would have had authority under the law to purchase them from another and to pay the contract price, or in the absence of a contract, what they were reasonably worth, and as the amounts paid for same were the customary prices charged by other persons dealing in such supplies in the county, it would be inequitable to permit the county to recover the money paid for ihe supplies where they had been used and' could not be returned as was the case here. [328]*328Many authorities hold that if a transaction like the ones in question is prohibited under a criminal statute prescribing a penalty, there can be no recovery of any sum whatever by the party who furnishes goods in violation of the statute, even though the other party has used them, while others hold that even in such a case the party may recover what they are reasonably worth, though he can not recover the contract price. At the time these transactions occurred we had no statute making them penal offenses, as Chapter 4020, act approved May 19, 1891, entitled “An act to prohibit officers from bidding for or entering into any contract which they are or may be interested in the letting and prescribing a penalty for the same,” applies only to contracts for the working of public roads or streets, the construction or building of bridges, the erection or building of houses, or for the performance of any other public work in which the officer was a party to the letting, and not to transactions such as'are involved in this case, and Chap. 518G, act approved May 29th, 1903, had not then been enacted. The doctrine that a county' “may become liable upon a legal implication when properly made” is expressly recognized and sanctioned in Payne v. Washington County, 25 Fla. 798, text 807, 6 South. Rep. 881, and the question we are required to determine is whether such legal implication exists in the present case. It would seem that in Indiana, and perhaps some other States, no recovery can be had even upon quantum valébat, for transactions like the ones here involved, but the great weight of authority sustains the right of the party supplying the goods to recover what he has actually expended, or what the supplies were reasonably worth where no actual fraud was intended or perpetrated, and the supplies were necessary and beneficial to the county, ap[329]*329plying with modifications the general rule which imposes liability upon an individual for goods accepted and used by him, under such circumstances as to exclude the idea of a gift. This rule founded in justice is much restricted in its application to persons under disability, such as infants and married women.

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Bluebook (online)
49 Fla. 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lainhart-v-burr-fla-1905.