Norbeck & Nicholson Co. v. State

142 N.W. 847, 32 S.D. 189, 1913 S.D. LEXIS 210
CourtSouth Dakota Supreme Court
DecidedJuly 11, 1913
StatusPublished
Cited by46 cases

This text of 142 N.W. 847 (Norbeck & Nicholson Co. v. State) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norbeck & Nicholson Co. v. State, 142 N.W. 847, 32 S.D. 189, 1913 S.D. LEXIS 210 (S.D. 1913).

Opinion

McCOY, J.

This is an original action commenced by Nor-beck & Nicholson Company, plaintiff, against the state of South Dakota, under the provision of the Code of Civil Procedure, providing that when the State Auditor shall refuse to allow any just claim against the state, that any person deeming himself aggrieved thereby may maintain an action in the Supreme Court against the state to determine the legality or justness of such claim. From plaintiff’s complaint it • appears that one Peter Norbeck, during the year 1911, was president of the plaintiff corporation, and was also, during 1911, state senator for Spink county, state of South Dakota; that during the legislative session of 1911 (Laws 1911, c. 38), an act was passed and became a lav/, appropriating $5,000 to sink and equip an artesian well and provide necessary water mains in connection -therewith upon the State University grounds at Vermillion; that after the passage of said law, and about the 15th of March, 1911, the said Peter Norbeck, acting as president of plaintiff corporation, entered into a contract with the state board of regents of education to construct, sink, and equip said artesian well mentioned and provided for in said legislative act; that in and by the terms of said contract plaintiff was to furnish all labor and materials for the sinking and construction of said well, and was to receive as compensation therefor a certain sum per foot depth; that under and by virtue and in pursuance of said contract plaintiff did sink and construct said well to the dept of 442 feet and furnished the materials therefor, between the 20th day of March and the 8th day of April, 1911, upon the State University grounds, and that the state ever since has been, and now is, enjoying the full and exclusive use and benefit of said well, and of plaintiff’s labor and materials furnished in the construction thereof; that thereafter, on about the 1st day of May, 1911, and in due form of law, the plaintiff presented its claim in the sum of $2,-602.89 to the State Auditor for allowance and issuance of a warrant upon the State Treasurer therefor, and that the State Auditor refused to allow such claim- on the ground that the same was in conflict with section 12, article 3, of the state -Constitution; that the reasonable value of the work and materials furnished by plaintiff in the construction and sinking of said well is the -sum of $2,602.89, for which amount plaintiff demands judgment against the defendant, state of South Dakota. To which’ complaint de[196]*196fendants interposed a demurrer on the ground that such complaint fails to state facts sufficient to constitute a cause of action against defendant.

[1] It is the contention of the defendant state that this contract entered into by Norbeck & Nicholson Company to sink and equip said well is an illegal contract by reason of its being prohibited by section 12, article 3, of the Constitution, and is against public policy, and that plaintiff cannot acquire any legal right of any kind or character under such an illegal contract, either on the express contract, or an implied contract, or on quantum meruit; while, on the other hand, it is the contention of plaintiff that although the said contract is illegal and void and prohibited by law, still plaintiff should be permitted to recover on quantum meruit— that is, implied contract — the reasonable value of the labor and materials furnished the state in pursuance and performance of such prohibited contract. We are clearly of the opinion that, under the great weight of judicial authority, the state is right in its contention that said contract is wholly illegal and void, and against public policy, and cannot be enforced, in whole or in part, on any theory of any kind. Section 12, article. 3, state Constitution, among other things provides: “Nor shall any member of the Legislature during the term for which he shall have been elected,, or within one year thereafter, be interested, directly or indirectly, in any contract with the state or any county thereof, authorized by any law passed during the term for which he shall have been elected.” Section 3, article 12, of the state Constitution further provides, among other things: “The Legislature shall never * * * authorize the payment of any claims or parts thereof created against the state, under any agreement or contract made without express authority of law, and all such unauthorized agreements or contracts shall be null and void.” Here, then, we have a contract which is expressly .prohibited by the Constitution, the highest law of the state, and which unauthorized contract is declared to be null and void, in whole and- in part.

The illegality of some contracts consists in the fact that the subject-matter of the contract is illegal without reference to the parties who enter into such contracts, such as contracts relating to the sale of intoxicating liquors in territory where such sale is prohibited and made penal, and such contracts are almost univer[197]*197sally held to be illegal, and void, and against public policy, and of no effect whatsoever, and wholly uneforceable in the courts, either on the express contract, or on an implied contract, or on the quantum meruit. The case of Sullivan v. Horgan, 17 R. I. 109, 20 Atl. 232, 9 L. R. A. 110, is an illustration of this class of illegal contracts, where a person hired out as a clerk to a person who sold groceries and illegally sold intoxicating liquors, wherein it was held that such clerk could not recover on the quantum meruit for the value of his services as grocery clerk where the contract was inseparable. To the same effect are the decisions in the following cases: Brinkman v. Eisler ( City of Ct. N. Y.) 16 N. Y. Supp. 154; Bixby v. Moor, 51 N. H. 402; Foley v. Speir, 100 N. Y. 552, 3 N. E. 477; Cole v. Brown-Hurley Hardware Co., 139 Iowa, 487, 117 N. W. 746, 18 L. R. A. (N. S.) 1161, 16 Ann. Cas. 850; Chapman v. Haley, 117 Ky. 1004, 80 S. W. 190, 4 Ann. Cas. 714, and note. In the case at bar, and other cases of this class, it will be observed that the illegality consists of or arises, not from the inherent nature of the subject-matter of the contract itself, but from the express prohibition against the parties, situated in certain fiduciary or trust relationship toward each other, entering into contracts at all with each other, either directly or indirectly. In the case of Hope v. Park Association, 58 N. J. Law, 627, 34 Atl. 1070, 55 Am. St. Rep. 614, the court said: “An agreement which controls or restricts, or tends or is calculated to control or restrict the free exercise of a discretion for the public good, vested in one acting in a public afficial capacity, is illegal, and so reprobated by the courts that no redress will be given to a party' who sues • for himself in respect of it.”

[2] A member of the state Legislature, by virtue of his office, stands in a fiduciary and trust relation towards the state; in other words, 'he is the confidential agent of the state for the purpose of appropriating the state’s money in payment of the lawful contractual obligations, of the state, and it seems to be almost universally held that it is against sound public policy to permit such an agent, or any agent occupying a like position, to himself be directly or indirectly interested in any contract with the state or other municipality, during the period of time of -the existence of such trust and confidential relationship. The private interest of such an agent should not become antagonistic to his public [198]*198duty.

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Cite This Page — Counsel Stack

Bluebook (online)
142 N.W. 847, 32 S.D. 189, 1913 S.D. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norbeck-nicholson-co-v-state-sd-1913.