People ex rel. McCauley & Tevis v. Brooks

16 Cal. 11, 1860 Cal. LEXIS 162
California Supreme Court·Decided July 1, 1860·Published·Cited by 112 cases

Opinion

Field, C. J. delivered the opinion of the Court

Code, J. concurring.

This is an application for a mandamus to compel the respondent, as Controller of the State, to issue his warrants to the relators, upon the Treasurer, for the sum of $270,000, alleged to be due to them on the twenty-sixth of March, 1860, upon a contract made in the name and on behalf of the State by the Board of State Prison Commissioners with James M. Estill, under the Act of March 21st, 1856. That act required the Commissioners to lease the State prison grounds and property, with the labor of the convicts, for a period of five years, at a price not exceeding $15,000 a month, and to provide in the contract with the lessee for the erection, at his expense, of such buildings as would conduce to the convenient and safe keeping and working of the convicts, and to exact from him a bond in the penal sum of $200,000, with sufficient sureties, conditioned for the faithful performance of the contract.

The seventh section of the act is in these words: The sum of fifteen thousand dollars per month, or such sum per month less than that amount, in accordance with the contract to be made by said Board of Commissioners, as specified in sections first and second of this act, is hereby appropriated out of any money in the treasury not otherwise appropriated; and the Controller of State is hereby authorized and required to draw his warrants on the Treasurer of State for said sum; and the Treasurer of State is hereby directed to pay the said warrants, on application of said lessee in writing, on the last day of each month.”

The contract was entered into on the twenty-sixth of March, 1856, and is for the designated period of five years. By it the State stipulates and agrees, upon the considerations therein specified, to pay the lessee at the end of each month during the continuance of the term, the sum of $10,000, in conformity with the law regulating the Board of Commissioners, and defining their powers and duties.

Upon the execution of the contract, Estill took possession of the prison grounds and property, and of the convicts confined in the prison, and continued in such possession until the fourteenth of May, 1857, when he assigned and transferred to McCauley all his interest, rights and privileges under the contract until the twenty-sixth of February, 1861, with the exception of a right to draw one-half of the monthly [25] sum. stipulated to be paid by the State, the lessee reserving that right to himself. On the following day, McCauley received possession of the premises, and proceeded to discharge the obligations of Estill under the contract. Subsequently the remaining interest of the lessee was assigned—one-half thereof to McCauley, and the other half to Tevis, who are the relators in the present proceeding.*

From the date of the contract with Estill until the assignment to McCauley, the State, under the provisions of the Act of March 21st, 1856, paid to the lessee the monthly instalments stipulated, and after the assignment, until the twenty-sixth of December, 1857, paid the same to the lessee and McCauley jointly. These payments were irregularly made, and a part of the time in depreciated paper; but no question arises in the present proceeding from that circumstance. Since the twenty-sixth of December, 1857, no payments of any kind have been made, but on the contrary, the payment shave been expressly refused. From that time to the present, with the exception of the period during which he was illegally and forcibly dispossessed by the Governor under the Act of the twenty-sixth of February, 1858, McCauley has been in the possession of the premises, and has fulfilled the conditions of the contract with the State. On the twenty-sixth of March, 1860, there was due to the relators, according to the terms of the contract, the sum of $270,000; and on the twentieth of April they demanded of the Controller warrants for this sum upon the Treasurer of the State. At that time there was in the treasury, and in the general fund, of money not otherwise appropriated, and subject to be applied to the payment of the warrants, the sum of $230,000. The Controller refused to draw his warrants, and hence this application to the Court for the mandamus.

In the case brought by the State against McCauley and Tevis for the cancellation of the contract with Estill, we had occasion to consider the validity of the contract, and of its assignment, and the legislation had in relation to the same. We there held "the Act of March 21st, 1856, constitutional, and the contract valid and binding upon the State. The same objection's urged in that case have been repeated in this ; and we [26] have been earnestly requested to reconsider two, at least, of the positions laid down in our opinion—those which relate to the alleged want of authority in the Commissioners to make the contract in question, and to the alleged forfeiture of the lease by the assignment. We have listened with patience to the argument of the Attorney General on them', and after careful examination, we find nothing new advanced which creates a doubt of the entire correctness of the views we had expressed. Indeed, none of the cases relating to the State prison and the contract with the lessee, which have been before this Court, appear to us to have required for their determination anything beyond the application of well settled and familiar principles. There has been nothing novel in the questions they presented, and the only interest they have elicited has arisen from the nature of the property involved, and the character of the parties to the controversies.

The Commissioners were authorized under the act to contract with the lessee, at a price not exceeding $15,000 a month, and they made the contract for $10,000 a month. It is the additional stipulations, which it embodies, for the release of certain claims against the State, and the assignable’ form of the lease, which constitute the grounds of objection. These grounds do not go to the authority of the Commissioners or affect the validity of the contract They only go to the policy of the contract, and whatever consideration they might have been entitled to receive, had they been taken at the outset, it is clear it is now too late to urge them. The Legislature at the time interposed no objections of the kind. It may well have thought that, as the additional stipulations imposed no additional burdens, the release of the claims secured by the contract was an advantage which it preferred to retain; and may have been satisfied with the security of the bond against any public inconvenience from a possible transfer of the lease. At any rate, the contract was acquiesced in and affirmed; the lessee took possession, maintained the convicts and erected valuable improvements upon the premises, and the State, until the twenty-sixth of December, 1857, paid the monthly instalments stipulated. After such acquiescence and part performance, objections to the form or provisions of the contract .cannot be raised.

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People ex rel. McCauley & Tevis v. Brooks, 16 Cal. 11, 1860 Cal. LEXIS 162 (Cal. 1860).

16 Cal. 11 (People ex rel. McCauley & Tevis v. Brooks) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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