Nashville v. Sutherland & Co.

19 L.R.A. 619, 92 Tenn. 335
CourtTennessee Supreme Court
DecidedMarch 4, 1893
StatusPublished
Cited by14 cases

This text of 19 L.R.A. 619 (Nashville v. Sutherland & Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nashville v. Sutherland & Co., 19 L.R.A. 619, 92 Tenn. 335 (Tenn. 1893).

Opinion

Snodgrass, J.

The defendant in error, by joint conveyance of its members, Wm. Sutherland and [336]*336{Jhas. A. Graves, in deed executed June 15, 1888, •conveyed to plaintiff in error a right of way through their lumher-yard for a ' sewer-pipe, to •drain into the river a pond lying near the property of Sutherland & Co., for the consideration of $150, and the further consideration expressed in a •clause of the deed made by Sutherland and Graves, to he hereinafter quoted, which deed was accepted hy the city, the cash consideration paid, and the pipe laid and a valve constructed.

The terms of the contract were expressed in the deed referred to; and while this wTas signed ■only by the vendors, it, as stated, was accepted by the city, and is therefore as obligatory as if signed by its authorized officers, to the extent that it is at all binding.

The clause of the contract out of which the present controversy arises is as follows:

“It is further agreed, and the city of Nashville binds itself, to have said sewer so constructed with a suitable valve as will prevent, in case of high rise in the river, the flowing of water from the river back through the said pipe or sewer into the lot or premises of said Sutherland and Graves to their injury or damage.”'

And its effect, if valid, is to make the city an Insurer of the property of the conveyors against •injury or damage hy reason, of overflow through this valve and pipe.

The city laid the pipe and constructed the valve in the fall of 1888. In 1890 an unusually high [337]*337rise in the river caused an overflow through the valve and pipe, and submerged the property of Sutherland & Co., doing them much - damage. The present action was instituted by them to recover damages arising from breach of this contract. The amount claimed was $3,000. There was a verdict for $2,845, $845 of which was remitted, and judgment rendered for $2,000 and costs. The city appealed in error.

The Court' charged the jury “ that if the Board of Public Works and Affairs accepted for the city this contract, and in pursuance of it entered upon the plaintiff’s premises, and occupied the same by the construction of said sewer or drain, then the city will be bound by all the covenants and stipulations of the contract.”

He refused to charge, as requested by plaintiff in error, that “ the city is only liable for such negligence as is imposed by law, and the officers of the city cannot bind it to a higher degree of care and skill and diligence than. the law imposes. Before' the city can be bound by guarantee of its officers, they must have the power, under the charter of the city, to bind the city by such guarantee.”

In both. respects, his Honor, the Circuit Judge, was in error. It was within the power of the officers of the city to agree to put in any given kind of sewer and valve (had they done so) as part consideration for the grant of right of way; but they could not, in the absence of charter [338]*338power, bind the city by a guarantee that they or it would put in such pipe or valve as would prevent overflow to the injury or damage of defendants, and thus make the city insurers of property against such injury.

The city is only liable for absence of reasonable care and skill in the execution of such work, and its officers cannot lawfully contract to bind it beyond this without express charter power not claimed or shown in this record to exist.

The first proposition is well settled everywhere, and specially in this State. Humes v. Knoxville, 1 Hum., 403; Nashville v. Brown, 9 Heis., 6; Horton v. Nashville, 4 Lea, 49. And the second follows as a matter of course. But this, while not heretofore, as far as we are able to find, expressly adjudged in this State, has been elsewhere settled, and the principle is a sound one.

The theory on which it is founded is thus stated by Mr. Dillon:

In determining the extent of the power of a municipal corporation to make contracts, and in ascertaining the mode in which the power is, to be exercised, the importance of a careful study of the charter or incorporating Act and of the general legislation of the State on the subject, if there be any, cannot be too strongly urged. Where there are express provisions on the subject, these will, of course, measure, as far as they extend, the authority of the corporation. The power to make contracts, and to sue and to be sued thereon, [339]*339is usually conferred in general terms in the incorporating Act. But where the power is conferred in this manner, it is not to be construed as au-' thorizing the making • of contracts of all descriptions, but only such as are necessary and usual, fit and proper, to enable the corporation to secure or to carry into effect the purposes for which it was created; and the extent of the power will depend upon the other provisions of the charter prescribing the matters' in respect of which the corporation is authorized to act. To the extent necessary to execute the special powers and functions with which -it is endowed by its charter, there is, indeed, an implied or incidental authority to contract obligations, and to sue and be sued in the corporate name.” Dillon on Municipal Corp., Sec. 443.

As to the effect of ultra vires contracts, the same author adds:

The general principle of law is settled beyond controversy that the agents, officers, or even city council of a municipal corporation cannot bind the corporation by any contract which is beyond the scope of its powers, or entirely foreign to the purposes of the corporation, or which (not being legislatively authorized) is against public policy. This-doctrine grows out of the nature of such institutions, and rests upon reasonable and solid grounds. The inhabitants are the corporators; the officers are but officers or public agents of the corporation. The duties and powers of the officers or [340]*340public agents of the corporation are prescribed by statute or charter, which, all persons not only may know, but are bound to know. The opposite doctrine would be fraught with • such danger and accompanied with such abuse that it would soon end in the ruin of municipalities or be legislatively overthrown. These considerations vindicate both the reasonableness and necessity of the rule that the corporation is bound only when its agents or officers — by whom it can alone- act, if it acts at all — keep within the limits of the chartered authority of the corporation. The history of the workings of municipal bodies has demonstrated the salutary nature of this principle, and that it is the part of true wisdom to keep the corporate wings clipped down to the lawful standard. It results from this doctrine that contracts 'not authorized by the charter or by other legislative acts — that is, not within the scope of the powers of the corporation under any circumstances — are void; and, in actions thereon, the corporations may successfully interpose the plea of ultra vires, setting up as a defense its own want of power, under its charter or constituent statute, to enter into the contract.” Dillon on Municipal Corp., Sec. 457.

In Sec. 458 of same work he says:

“ Agreeably to the foregoing principles, a corporation cannot maintain an action on a bond or a contract which is invalid;

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Cite This Page — Counsel Stack

Bluebook (online)
19 L.R.A. 619, 92 Tenn. 335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nashville-v-sutherland-co-tenn-1893.