Ottumwa Brick & Construction Co. v. Ainley

80 N.W. 510, 109 Iowa 386
CourtSupreme Court of Iowa
DecidedOctober 18, 1899
StatusPublished
Cited by9 cases

This text of 80 N.W. 510 (Ottumwa Brick & Construction Co. v. Ainley) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ottumwa Brick & Construction Co. v. Ainley, 80 N.W. 510, 109 Iowa 386 (iowa 1899).

Opinion

WateRMAN, J.

The proceedings adopted for the levy <o£ the tax in question are not complained of prior to1 the acceptance of plaintiff’s bid for the work. The resolution ordering this improvement contained the following provision: 1 “That all work shall be let upon contract, which shall obligate the contractors to accept such .certificates, whether indorsed or not, in full compensation for the work and labor of all such improvements except as to the intersections of streets, highways, avenues, and spaces opposite alleys or improvements in front, of city property and all property not subject to special assessment.” The advertisement for bids provided for like terms. In response to the proposals, but one bid was made, — that of plaintiff, — and to. this was attached the following condition: “The condition of this bid is that the city of Ottumwa shall guaranty to. the. Ottumwa Brick and Construction Company the" payment of the certificate to be issued against the property on the west side of the street for the distance of three hundred feet south of the south end of the wagon bridge.” This bid was accepted, and a contract in accordance therewith, binding the city to' guaranty the certificate specified, was duly entered into, and the work claimed for was done thereunder. The three hundred foot strip of ground for which this guaranty was given is lowland next the Des Albines river, subject to. overflow in ordinary high water, and was of little or no value. The appellants contend, in the first place, that the making of this contract involved an excess of power on the part of thebity. The reasons given for this claim are as follows: “It exceeded its power, because no. notice was given, or advertisement made, that the city council would accept bids conditioned as appellee’s bid was conditioned. It exceeded its power, because there was no chance given for competitive bidding for1 a contract such as was entered into by the city with the appel-lee. It exceeded its power, because the resolution ordering the work provided expressly that bids should be received [389]*389for making the improvement, the contractors to look exclusively to tbe assessment certificates and intersection tax for their pay; and under the provisions of Ordinance 407 the advertisement, for bids was required so to state, and in fact did so state in this case, and yet the city accepted a bid by the terms of which it guarantied the payment of the certificate to be issued for three hundred feet of paving on the west side of said street from the south end of the bridge, without a new advertisement for bids so conditioned. It exceeded its power, because the acceptance of a bid so at variance with the advertisement as this one was, violated the object, spirit, and intent of the statute and ordinance in relation to advertisement for bids and competitive bidding. It exceeded its power, because the contract made was in direct conflict, with the ordinance and resolution and the advertisement for bids under which the improvement was authorized, in this: that tlie city, in such ordinance, resolution, and advertisement, expressly says that the contractors must look alone to the assessment certificates and intersection tax for their pay, and that in no' event will the city incur any liability; and then, without further notice, enters into a contract guarantying the payment of a.t least one thousand one hundred and eighty-eight dollars worth of paving along said street where there is no land above ordinary high-water mark against which an asessment can be levied, in direct violation of such resolution, ordinance, and advertisement, without requiring new bids, and by reason of the suspicion- — to say the least of it-^-that there is a private understanding that such a bid would be accepted. It exceeded its power, because the making of such contract, under the circumstances disclosed in this case, is a legal fraud upon the abutting property owners. The city will not be allowed to provide one mode of procedure by its ordinances and resolutions, and then contract for another and directly different 2 thing.” It seems to be admitted that the land in question is below ordinary high-water mark. This being true, the title thereto is in the state. Steele [390]*390v. Sanchez, 72 Iowa, 65, and oases oiled. In snob a case ,tb© city would lack power to impress tbe property with an assessment of this character. Polk County Savings Bank v. State, 69 Iowa, 24. It is held, further, in this last case, that the city is responsible for the cost of such work when, for any reason, a valid assessment cannot be made. See, also Bucroft v. City of Council Bluffs, 63 Iowa, 646, It therefore appears that, in the absence of any express provision in the contract, the city would have been liable as upon an implied guaranty for the cost of the improvement in front of this property. It will be noticed that the resolution ordering the paving expressly states that the contractor shall not be required to accept certificates for street intersections, or for the improvement in front of property not subject to special assessments. This provision as to terms of payment, as carried into' the advertisement for bids, omits the clause relating to property not liable for special tax. But0 'the law necessarily implies this exception. The guaranty in the contract, if but expressive of a liability that would have existed in its absence, could not affect the legality of the instrument.

II. But we need not rest our holding wholly upon this ground. It is clear that the tract of land in question was so nearly valueless that a lien upon it would have been 3 of no practical worth. Without the city’s guaranty, the cost of paving in front of this property would have had to be apportioned against the other real estate abutting on the improvement; that is, the cost to1 the other property owners would have been increased by the amount necessary to1 make the improvement in front of this tract. There is nothing in the law to' prevent a city, whose finances will admit of so doing, from paving for improvements like that in question out of the general fund. If it can lawfully pay for a whole, it can for a part. We grant that, if other bids had been made upon the work in accordance with the proposals, — that is, free from the condition objected [391]*391to, — there would be serious question, under the phase of the case we are now discussing, whether the municipality could have lawfully accepted plaintiff’s bid. But there is no question here of stifling competition. Competitive bids were sought in a proper manner, and upon proper terms. No bid save that of plaintiff was received. The fact that the city, in order to hold this bid, guarantied an amount which it had a right to pay, should not have the effect to annul the whole proceeding. This is especially true where the guaranty is in the interest of the abutting owners. This position, we think, has some support in Osburn v. City of Lyons, 104 Iowa, 164, and cases cited therein.

III. Furthermore, we may say that the matter set up is not jurisdictional; it is an irregularity, which may be disregarded, under sections 478, 479, Code 1873, which 4 were in force when the action at bar was instituted. City of Burlington v. Quick, 47 Iowa, 227. The present action, we think, should be regarded as governed by these sections. Tuttle v. Polk, 92 Iowa, 433.

IV. The defendant Carrie M. IVIetzgar sets up, as a Special defense, that her property does not abut upon the street which was improved.

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

Related

Anderson-Deering Co. v. City of Boone
205 N.W. 984 (Supreme Court of Iowa, 1925)
Waller v. Pritchard
202 N.W. 770 (Supreme Court of Iowa, 1925)
Morse v. Tillotson & Wolcott Co.
253 F. 340 (Second Circuit, 1918)
Fullerton v. City of Des Moines
126 N.W. 159 (Supreme Court of Iowa, 1910)
Lightner v. Board of Supervisors
123 N.W. 749 (Supreme Court of Iowa, 1909)
American Bonding Co. v. City of Ottumwa
137 F. 572 (Eighth Circuit, 1905)
Martin v. City of Oskaloosa
102 N.W. 529 (Supreme Court of Iowa, 1905)
Allen v. City of Davenport
132 F. 209 (Eighth Circuit, 1904)
Edwards & Walsh Construction Co. v. Jasper County
90 N.W. 1006 (Supreme Court of Iowa, 1902)

Cite This Page — Counsel Stack

Bluebook (online)
80 N.W. 510, 109 Iowa 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ottumwa-brick-construction-co-v-ainley-iowa-1899.