Lukens v. Nye

105 P. 593, 156 Cal. 498, 1909 Cal. LEXIS 354
California Supreme Court·Decided November 22, 1909·No. Sac. No. 1677.·Published·Cited by 46 cases

Opinions

SHAW, J.

This is an action in mandamus to compel the controller to issue a warrant on the state treasurer to the plaintiffs for the sum of $22,808.15, being the second installment of the amount appropriated to John Mullan by the act of the legislature approved March 22, 1905 (Stats. 1905, p. *500 791), in satisfaction of his claim against the state. The plaintiffs are his assignees.

The act appropriates $45,616.30, in payment of said claim, and declares that “the controller is hereby authorized and directed to draw his warrant for the said sum and the treasurer of state is hereby authorized and directed to pay the same, and thereupon the said John Mullan shall make and deliver unto the controller a full receipt and release of his said claim.” One half is made payable on January 1, 1906, and one half on January 1,1907. The installment due on January 1, 1906, has been paid. This action is to compel a warrant for the remaining one half. The act exempts the claim from the provisions of section 672 of the Political Code and therefore it is not required to have the sanction of the board of examiners.

The answer of the controller alleges the following facts in defense. Prior to the passage of the act the claim had been assigned'to the plaintiffs. After the bill had been passed in both houses of the legislature and before its approval, the governor informed the plaintiffs that the amount allowed by the bill was excessive and that he would not approve the same unless the plaintiffs would agree to accept the sum of twenty-five thousand dollars in full satisfaction of the claim. Thereupon plaintiffs and the governor agreed that twenty-five thous- and dollars was the full amount of the claim. An agreement was drawn up providing that in consideration of the sum of twenty-five thousand dollars, to be paid in two installments, the first of $22,808.15, to be paid January 1, 1906, and the second of $2,191.85, to be paid on January 1, 1907, the said plaintiffs acknowledged full receipt and satisfaction of the claim and released the state from further liability, claim, and demand therefor, and that if the payments were not made on said dates, the agreement should be void. For the purpose of inducing the governor to approve said bill and attach his signature thereto so that it would become a law, plaintiffs signed the said agreement and delivered it to the governor for the benefit of the state, and the governor, relying upon the said agreement, and being thereby induced to do so, signed the said bill, whereby it became a law. The plaintiffs, .in pursuance of said agreement, on January 2, 1906, demanded of the controller a warrant for the sum of $22,808.15, due on *501 that day by the act, and thereupon the controller, for the purpose of carrying out said agreement, and relying thereon and also on the representations of the plaintiffs that they would accept the sum of twenty-five thousand dollars in full satisfaction of said claim, issued and delivered the said warrant, so demanded, and the plaintiffs collected the same from the treasury. The controller is ready and willing to issue a warrant for the remainder of $2,191.85, due under the agreement, and has offered the same to the plaintiffs, who refuse to accept it.

A demurrer was sustained to the answer, and judgment passed to the plaintiffs as prayed for. The appellant contends : 1. That the agreement is valid; 2. That the plaintiffs, after thereby inducing the governor to sign the appropriation bill in question, are estopped to demand any greater sum than the agreement provides; and 3. That under the rules applying in mandamus the lower court, in the exercise of a sound discretion, should have refused the writ on the ground that the claim for the excess is unjust and inequitable.

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Lukens v. Nye, 105 P. 593, 156 Cal. 498, 1909 Cal. LEXIS 354 (Cal. 1909).

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