Potter v. Borough of Metuchen

155 A. 369, 108 N.J.L. 447, 1931 N.J. Sup. Ct. LEXIS 527
CourtSupreme Court of New Jersey
DecidedJune 12, 1931
StatusPublished
Cited by18 cases

This text of 155 A. 369 (Potter v. Borough of Metuchen) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potter v. Borough of Metuchen, 155 A. 369, 108 N.J.L. 447, 1931 N.J. Sup. Ct. LEXIS 527 (N.J. 1931).

Opinion

The opinion of the court was delivered by

Campbell, J.

Plaintiff, the assignee of Christopher Marzella, sued for the construction of a concrete floor in a building leased by the defendant, as a firehouse at a nominal rental of one dollar per year. The state of demand is in two counts; the first alleges a specific contract at an agreed price of $350; and, the second is upon a book account in the same amount.

At the trial the plaintiff established that the work was done and completed in pursuance of a verbal contract between his *449 assignor and two members of the borough council, referred to as fire commissioners.

It is not shown, nor is our attention directed to, any authority, by statute or otherwise, for the appointment of these fire commissioners nor what statutory or other powers they possessed, except as set forth in the state of case, to which we hereafter refer.

Statutory authority for their appointment and their power does not appear to be raised or contested and, therefore, we have not considered it.

The defendant-appellant contended below, and here, that the alleged contract was not authorized by the borough and was, in fact, beyond the power of both the mayor and council and the fire commissioners because it was for repairs to property not belonging to the borough; that it was not made by authority of any ordinance or resolution; and that the borough had not ratified the contract or accepted the work.

The defendant-appellant moved for a nonsuit and later for a verdict to be directed in its favor, because—

1. There was no authority in the councilmen (evidently the two fire commissioners) to enter into the contract.

2. That no resolution or ordinance had been passed authorizing the contract and therefore no obligation existed upon the part of the borough to pay.

Both motions were denied and the trial court, sitting without a jury, rendered judgment in favor of the plaintiff below.

After the argument of this appeal, the appellant, by leave of court, filed a brief setting up the points upon which it relies for a reversal of the judgment, and as we gather therefrom and from the oral argument of counsel it is fair to assume that reliance is based solely upon the insistence that the fire commissioners had no authority to contract respecting the matter, and there had been no acceptance of the work by the borough and consequently no ratification of the contract by the borough if the fire commissioners were without authority to make and enter into it.

Counsel for appellant, at the argument of the cause, urged not only that there was no liability but that the borough could *450 not legally make payment because the asserted contract was ultra vires in that the building in which the work was performed was not the property of the borough.

This ground does not appear to be available because if this error is intended to be asserted under the refusal to nonsuit or direct the verdict it was not made a ground or reason for either motion. The grounds for nonsuit were, and those for direction of verdict were the same;

1. That there was no authority in the councilmen (evidently the two councilmen who were the fire commissioners) to enter into the contract;

2. That no resolution or ordinance had been passed authorizing the contract; and

3. That there was no obligation on the part of the borough to pay for this work done.

It appears, therefore, that we are concerned only'with the questions — did the proofs show that the fire commissioners had authority to make the contract; and, if not, did the borough accept'the work or ratify the contract?

Prom the state of case before us we conclude that this must be answered in the negative.

The trial judge found 'that the fire commissioners “had charge of the fire houses and equipment,” and with that finding of fact rested his conclusions upon Wentink v. Passaic, 66 N. J. L. 65, and Grant v. Bayonne, 5 N. J. Mis. R. 407. Admittedly there was no ratification or acceptance upon the part of the borough.

The cases upon this'subject appear to be divided into five classes:

1. Where there .was no lack of power in the corporation or its agents to make the contract but the defect was in an irregular exercise of such power. There a recovery may be had because one contracting with a public body, under such conditions, is not obliged to scrutinize, at his peril, the corporate proceedings. Wentink v. Passaic, supra; Tappan v. Long Branch, 59 N. J. L. 371; Knapp v. Hoboken, 38 Id. 371; Bigelow v. Perth Amboy, 25 Id. 297.

2. Where the contract is within the corporate power, but *451 entered into with unauthorized agents, and has, subsequently, been ratified and confirmed by the corporate body, 'or its properly authorized agents, in which case a recovery may be had. Cory v. Somerset, 44 N. J. L. 445; Car Spring Co. v. Jersey City, 64 Id. 544; Bourgeois v. Atlantic City, 82 Id. 82; Frank v. Jersey City, 90 Id. 273; Grant v. Bayonne, supra.

3. Where the contract is within the corporate power but entered into through unauthorized agents and the acceptance or ratification was not by the corporate body or its duly authorized agents — but by unauthorized agents or officers, in which event, there can be no recovery as upon a contract either expressed or implied. Car Spring Co. v. Jersey City, supra; Jersey City Supply Company v. Jersey City, 71 N. J. L. 631; Frank v. Jersey City, 90 Id. 273 (at p. 279).

4. Where the contract is not within the corporate powers there can be no ratification or acceptance, and consequently no recovery. Hackettstown v. Swackhamer, 37 N. J. L. 191.

5. Where the contract is within the corporate power, but entered into with an unauthorized agent, and there is no ratification, there can be no recovery. Giardini v. Dover, 101 N. J. L. 444.

Pertinently, the question is, into which of these five classes does the present ease fall?

The state of case, pages 16 and 17, shows: “Edward A.

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Bluebook (online)
155 A. 369, 108 N.J.L. 447, 1931 N.J. Sup. Ct. LEXIS 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potter-v-borough-of-metuchen-nj-1931.