People ex rel. Lord Constr. Co. v. Stevens

67 Misc. 529, 124 N.Y.S. 769
CourtNew York Supreme Court
DecidedMay 15, 1910
StatusPublished
Cited by1 cases

This text of 67 Misc. 529 (People ex rel. Lord Constr. Co. v. Stevens) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Lord Constr. Co. v. Stevens, 67 Misc. 529, 124 N.Y.S. 769 (N.Y. Super. Ct. 1910).

Opinion

LeBoeuf, J.

Upon the argument of the motion for a peremptory writ of mandamus, stress was laid by counsel upon the claim that the check objected to by the Superintendent of Public Works substantially conformed to the conditions upon which bids were to be received. Equal stress was laid upon the provisions of the Constitution as giving the relator a constitutional right to the contract as being the lowest bidder.

If the sole question before me was whether or not the check substantially conformed to the requirements, I should be of the same mind as I was upon the argument of this motion, and hold that it does.

[532]*532The case is somewhat different from that presented in People v. Contracting Board, 46 Barb. 254, where the relator’s certificate of deposit certified that a reasonable sum was deposited to the credit of himself, and then was by the relator indorsed over to the auditor, instead of being a certificate certifying the deposit to the credit of the auditor directly, as the law required.

Here the check was drawn payable to the Treasurer of the State of Hew York, instead of to the Superintendent of Public Works, as both the law and the conditions of bidding required, but the relator unfortunately used a voucher check, which contained a great mass of printed matter, and particularly contained, where the indorsement would naturally be made, the legend, Do not endorse if incorrect.” The balance of the printed matter following this legend, and probably the legend itself, evidently referred to the reverse side of the check, which reverse blank was the common form for an account or claim, but was not filled in, and may fairly be deemed surplusage.

So far as the legal effect of the expression, “ Do not endorse if incorrect,” is concerned, minds might differ; but it appears to me that this would not have been sufficient to have prevented the collection of the check by the State Treasurer, had it been indorsed by him, and that the relator would be estopped from setting up any objection to its payment to the State Treasurer, who, in case of forfeiture, was by statute authorized to collect it. The bank could not object because it had certified the check as payable to the payee and indorser, the State Treasurer.

The State of Hew York could alone collect the check. The duty of the Superintendent, had he 'awarded the contract to the relator and found it necessary to resort to the check, was to turn it or the deposit over to the State Treasurer ; and it is apparent from the reading of the conditions of the Blue Book attached to the bid itself that the purpose was to allow the Superintendent to hold the check, or deposit it iand turn over the deposit to the State Treasurer, if that became necessary — otherwise to return either the check or the deposit to the unsuccessful bidder.

[533]*533But I am not satisfied that the relator, under any circumstances, has a constitutional right to the contract.

The constitutional provision, section 9, article 7, “ all contracts for work or materials on any canal shall be made with the person who shall offer, bid or provide the same at the lowest price, with adequate security for their performance,” was evidently not intended to confer a right upon this relator, but, rather, to protect the State of blew York.

The Court of Appeals has held, in People v. Contracting Board, 27 N. Y. 381, 382, that “ The writ of mandamus is to some extent, at least, in the discretion of the court to grant or refuse; especially where, as in this case, no property of the relator has been taken or affected, and his claim rests altogether u-pon the interests of the State to have its work done by the lowest bidder, and not upon a legal right on his part. (People v. Canal Board, 13 Barb. 450, and cases cited.) The only legal right of the relator in such a case, if he could have any, would be to damages to him for refusing him the contract.”

The people of the State have entered upon an enterprise of the greatest magnitude, in which millions of dollars have been and are to be expended. So important was the question that it was made the subject of special submission to the people themselves; and the statute under which the Superintendent of Public Works is operating (Laws of 1903, chap. 147) was itself also submitted to the people. This court will take judicial notice of the public character and importance of the work, and of the necessity for upholding the acts of the officers charged with its administration, and sustain those acts, unless it appears that they are fraudulent, arbitrary and capricious, or clearly illegal.

It is claimed that the Superintendent had authority to demand striot compliance with the conditions of bidding, and Matter of Marsh, 83 N. Y. 431-435, is cited. There under the statute the contract was to be let to the lowest bidder, which, it was claimed, had not been done, by reason of noncompliance with certain conditions, and the court said: “But if the commissioner had the right to insert the specification, as we hold he did have, then he had the right to re[534]*534quire literal and exact, compliance therewith, and to decline all bids as informal which did not comply therewith.”

But .this reasoning did not in fact determine the case, for it was found for other reasons as a fact that the accepted bid was the lowest. Moreover, the action was one to set aside an assessment brought by an aggrieved taxpayer and not a contest between the rival contractors and the State, as here.

If necessary to find the proposition, I should base it not on this authority, but rather upon the terms of the act of 1903 and the provisions of the Canal Law, which (as pointed out hereafter) clearly give the Superintendent authority to impose the conditions here in controversy; and to my mind, in view of the character of the work and the loss to the people of the State through failure to proceed with expedition, give him the right to insist upon a literal compliance with those conditions.

The loss of this time to the State is of greater importance than the $4,000 additional which it is required to pay to the defendant D’Olier Engineering Company.

The magnitude of the work is such that the power is properly vested in him, else will the courts, before this work is completed, be compelled to stop its progress by injunction, such as was here granted, while questions which should be passed upon by him are being determined by the courts of last resort.

But, upon other grounds as well, the facts in this case warrant a denial of the writ, which the relator’s chief authority (People v. Contracting Board, 46 Barb. 259) deems is discretionary.

Considered from the standpoint of the exercise of this court’s discretion, we may concede that the Superintendent stated no other reason to the relator for his refusal to read or act on his bid than the informality of the check. The Superintendent’s two letters are specific, in that they called the attention of the relator only to that defect; but it is a fact, none the less, which must now be considered by this court on the question of discretion, that this bid did not strictly conform to the requirements of bidding in two other [535]*535respects; 'and so far as this non-compliance existed, whether or not the Superintendent called it to the attention of the relator is of little moment, if the non-compliance is a substantial non-compliance, and the conditions such as the Superintendent had the right to impose.

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Bluebook (online)
67 Misc. 529, 124 N.Y.S. 769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-lord-constr-co-v-stevens-nysupct-1910.