McMillan v. Barber Asphalt Paving Co.

138 N.W. 94, 151 Wis. 48, 1912 Wisc. LEXIS 254
CourtWisconsin Supreme Court
DecidedOctober 29, 1912
StatusPublished
Cited by12 cases

This text of 138 N.W. 94 (McMillan v. Barber Asphalt Paving Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McMillan v. Barber Asphalt Paving Co., 138 N.W. 94, 151 Wis. 48, 1912 Wisc. LEXIS 254 (Wis. 1912).

Opinion

TimliN, J.

In McMillan v. Fond du Lac, 139 Wis. 367, 120 N. W. 240, the city of Fond du Lac was enjoined from entering into the paving contract in question because the Barber Asphalt Paving Company had bought off the opposition of an alderman named Dockery to such contract by a concession to him and others of a reduction of $6 per thousand upon paving brick which that company was selling. When the former case was begun the contract was executory, a preliminary injunction restraining its execution was obtained, but vacated on motion of the city, and the circuit judge refused to continue it pending the appeal to this court. While that appeal was pending the contract in question was executed by the city and the paving company and the pavement therein provided for was laid. After the decision of this court on [50]*50March. 9, 1909, although, the contract had been then executed, judgment in the circuit court was entered enjoining the execution of that contract, thus relating back to the time of the commencement of that action 'and giving the plaintiff, McMillan, the benefit of his temporary injunction which the circuit court had wrongfully refused to continue pending the appeal. The present defendant was not a party to the former action, but its counsel appeared therein and participated in the defense in the circuit court and in this court. He was then under a general retainer from the defendant in this cause, he made no charge against the city, and this defendant paid his expenses. The city had other counsel, but the defendant’s counsel, while defending in the name of the city and to some extent for the city, was also defending for the Barber Asphalt Paving Company in the name of the city. It could not have been otherwise. Under such circumstances the judgment in the former action was binding upon the- defendant in this cause as well as upon the city of Fond du Lac. Kolpack v. Kolpack, 128 Wis. 169, 107 N. W. 457, and cases cited; Rowell v. Smith, 123 Wis. 510, 102 N. W. 1.

When the paving work was completed under the contract in question payment was made to the defendant in special improvement bonds pursuant to secs. 925 — 190, 925 — 192, 925 — 193, ch. 40a, Stats. (1898). A bond was issued against plaintiff’s property. The plaintiff thereafter brought this action to cancel and annul this special improvement bond. It appeared on the tidal that the bond had been sold by the defendant to an innocent purchaser, and judgment was rendered in favor of the plaintiff and against the defendant for the present worth of this bond, amounting to $1,214.58. This procedure was correct. Luetzke v. Roberts, 130 Wis. 97, 109 N. W. 949. Where a suit within the jurisdiction of equity is launched in good faith, and it thereafter appears that by reason of acts of the defendant or the intervention of the rights of innocent third parties the equitable remedy is due to the [51]*51plaintiff but impossible to be carried out, tbe courts may and frequently do decree money compensation in lieu of sucb other remedy. Bigelow v. Washburn, 98 Wis. 553, 74 N. W. 362; Chippewa B. Co. v. Durand, 122 Wis. 85, 99 N. W. 603.

Tbe defendant also' contends upon this appeal that notwithstanding the adjudication that the contract in question could not be legally entered into, yet the fact that such contract was, while the judgment of the court below sustaining it stood, not only entered into but fully performed, now operates to deprive the plaintiff of any benefit of the former judgment of this court. We cannot assent to this. The defendant, after it was informed by the commencement of the other action that its contract was tainted with illegality, went on and performed the same at its peril. It merely took its chances of the plaintiff making good his contentions and annulling the contract. Any other rule would permit the trustee and a third person, or a municipal corporation and a third person, to defeat the action of a cestui que trust or a taxpayer charging fraudulent collusion by merely continuing the collusion and completing the execution of the writing and performing the work upon the contract after the action to enjoin execution of the same was begun. Chippewa B. Co. v. Durand, supra. Courts are not so impotent; the law not so easily disregarded.

The illegality inherent in this contract continued, and- vitiated the contract notwithstanding the resignation of the erring alderman as a member of the city council and the execution of the written evidence of the contract after such resignation by the remaining city officers. This is not the case of a principal who, after being informed of the fact that His agent had been corruptly influenced by the person with whom he has made a contract on the principal’s behalf, yet chooses to permit the contract to be performed and avail himself of the benefits to be derived therefrom. The relation of principal and agent did not exist between the erring alderman and the city. [52]*52A municipal corporation cannot condone in this way illegalities of this nature. The plaintiff is entitled to vindicate the rights recognized and established by the judgment in the action in which he prevailed. We find nothing in the conduct of the plaintiff which amounts to a waiver of his right to assert the illegality of the contract declared in McMillan v. Fond du Lac, 139 Wis. 367, 120 N. W. 240.

It is argued that the defendant in this cause, when it made the concession upon the price of brick to the erring alderman, did not know that the latter had a private pecuniary interest in obtaining that concession, hut thought or might have thought he was acting for the general welfare in so doing. We consider that the defendant in this action is upon this point foreclosed by the decree in McMillan v. Fond du Lac, supra, on account of its participation in the defense of that action. But there ’are also other considerations. It can hardly avail to remove the taint of illegality from an offer to buy off opposition of a public officer to a contract by a reduction of price on a certain staple article of property to profess ignorance of how such reduction would benefit the officer. If this is enough to remove the taint of illegality, then a new, safe, „ and ingenious method of bribery has been discovered. It is enough to avoid the contract that the officer agreed to and did withdraw his opposition in consideration of concession of pecuniary value made to all, including himself, and that he availed himself of this concession to his own private pecuniary advantage. It is better that those dealing in municipal contracts were made aware that all their acts will be strictly scrutinized. As to the plaintiff, this paving contract between the defendant and the city, made in violation of a law founded upon public policy, is as if it never existed. . As to the plaintiff the defendant was a wrongdoer, placing improvements on plaintiff’s property against the will of the latter and in' spite of opposition. Under such circumstances there is no rule of equity which recognizes the defendant’s right to compensation. 3 Pom. Eq. Jur. (3d ed.) § 1241.

[53]*53Tbe point is made that the reassessment statutes should have been applied in this action. We do not think so. Sec. 1210d, Stats. (1898), as amended by chs. 9 and 19, Laws of 1901, ch. 276, Laws of 1903, and ch. 501, Laws of 1905, relates to cases where the work of paving, etc., has not been done in the face of pending preventive litigation. The present is a case where the work was done after the preventive suit was begun 'and while it was pending.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fraser v. Cohen
31 So. 2d 463 (Supreme Court of Florida, 1947)
Winn & Lovett Grocery Co. v. Saffold Brothers Produce Co.
164 So. 681 (Supreme Court of Florida, 1935)
State ex rel. Buchanan v. Cole
260 N.W. 467 (Wisconsin Supreme Court, 1935)
City of New Cordell v. Mansell
1934 OK 508 (Supreme Court of Oklahoma, 1934)
Holt Lumber Co. v. Duluth, South Shore & Atlantic Railway Co.
238 N.W. 839 (Wisconsin Supreme Court, 1931)
Strickler v. Consolidated School District No. 1
291 S.W. 136 (Supreme Court of Missouri, 1927)
City of Palestine v. City of Houston
262 S.W. 215 (Court of Appeals of Texas, 1924)
Pullen v. School District No. 3
186 P. 9 (Oregon Supreme Court, 1920)
Clarke v. County of Beadle
169 N.W. 23 (South Dakota Supreme Court, 1918)
Wagoner v. City of La Grande
173 P. 305 (Oregon Supreme Court, 1918)
Menasha Woodenware Co. v. Railroad Commission
166 N.W. 435 (Wisconsin Supreme Court, 1918)
City of Fond du Lac v. Barber Asphalt Paving Co.
146 N.W. 509 (Wisconsin Supreme Court, 1914)

Cite This Page — Counsel Stack

Bluebook (online)
138 N.W. 94, 151 Wis. 48, 1912 Wisc. LEXIS 254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcmillan-v-barber-asphalt-paving-co-wis-1912.