Purdy v. City of Independence

39 N.W. 641, 75 Iowa 356, 1888 Iowa Sup. LEXIS 345
Supreme Court of Iowa·Decided October 5, 1888·Published·Cited by 13 cases

Opinion

Reed, J.

— When plaintiff was elected to the office of city treasurer, the following ordinances were in force:

“Chapter IX. * * * Sec. 16. That the treasurer shall, before entering upon the duties of his office, execute a bond to the city in the sum of five thousand dollars. He shall collect, receive and safely keep, all moneys due or belonging to the said city, and for any sum of money so received shall execute duplicate receipts, one of which shall be delivered to the person from whom such sum shall be received, and the other returned to the city clerk. * * *”
“ Sec. 18. The treasurer shall be ex officio the collector of the city, and shall perform all the duties required by law or ordinance to be performed by the city collector.”
“Chapter VII. Sec. 5. The city treasurer shall receive as compensation one per cent, on all collections made by him, and also one per cent, on all disbursements made by him from the city treasury; provided that, for all moneys received by him of the county treasurer, he shall receive no compensation.”

The city negotiated its bonds to the amount of forty thousand dollars, for the purpose of raising the necessary money for the erection of a system of water-works. The arrangements for the negotiation of the bonds were made by the mayor with a firm of brokers in Chicago, but the moneys derived therefrom were paid over to plaintiff, who kept and disbursed the same to the contractors who did the work for the city. And his claim is for the compensation provided by section 5, chapter 7, for collecting and disbursing that amount of money. Before the bonds were negotiated, plaintiff signed .and delivered to the city a writing, by which he agreed to accept as full compensation for receiving and disbursing the moneys which should be derived therefrom the sum of fifty dollars. Afterwards, however, but before the bonds were negotiated, he gave a written notice to the city council that he would decline to accept any [358] other compensation for his services than that provided in the ordinance. But before that notice was received by the council that body adopted a resolution allowing the treasurer fifty dollars for receiving and disbursing the money to be derived from the sale of the bonds. The record of the council, however, does not show that the ayes and noes were called in the passage of the resolution. The city afterwards offered to pay said sum of fifty dollars, but plaintiff refused to accept that amount.

1. Cities and towns: officers: compensation: alteration by contract during term. I. It was contended by counsel for plaintiff that, owing to the failure of the council to call the ayes and n°eS 011 PaSSaSe °f Uie resolution, which Was the only action taken by that body, looking towards the acceptance of plain-° , x tiff’s offer, the arrangement was not consummated in the manner provided by law, and consequently it never had the force and effect of a contract. But, in the view we take of the case, this question need not be gone into, and for the purpose of the case it will be conceded that a contract, whereby plaintiff agreed to accept, and defendant to pay, fifty dollars, as full compensation for the services, was regularly entered into. It will also be conceded that the subsequent attempt by plaintiff to terminate the arrangement was without effect. It is entirely clear, we think, that but for the contract plaintiff would be entitled to the compensation provided by the ordinance for disbursing the money. The language of section 5, chapter 7, is “on all disbursements made by him from the city treasury.” By no possible construction can this language be limited to the ordinary revenues of the city, and it was plaintiff’s duty, under the other ordinances quoted, to receive and safely keep it; and when paid out upon the proper order of the council it was disbursed from the city treasury within the meaning of section 5, chapter 7. The question as to the defendant’s liability for that amount depends entirely, then, upon whether it was competent for the parties to fix, by contract, the compensation which should be x>aid for the services, and [359] we are of the opinion that the effect of section 491 of the Code is to absolutely prohibit the parties from entering into any contract upon the subject. The provision isas follows: “The emoluments of no officer whose election or appointment is required by this chapter shall be increased or diminished during the term for which he shall have been elected or appointed.” It may be conceded that one (and perhaps the principal) object which the general assembly had in view when the statute was enacted was to prohibit the city council from changing, by its own action, the compensation of a city officer, during his term of office, through motives of favoritism, or the opposite. But its effect is much broader than that. The evils which might result, if the compensation of an officer, which was fixed at the time of his election, could afterwards be changed by contract, would be as great as those which would follow if the council had power to increase or diminish such compensation at their own will. And one object of the enactment was to prevent such evils. The language is general, and absolutely prohibitive of any increase or diminution by any means whatever. It was insisted, however, that plaintiff rendered the services under the contract, and as a consequence he is entitled to no compensation whatever, if it was unlawful. But that position cannot be maintained. It assumes that the services were performed in pursuance of the contract. But that is not the fact. The performance of the services was imposed upon plaintiff by the ordinance as a duty of his office, and it was performed in obedience to that requirement. The contract had no relation to the performance of the duty, but had reference alone to the amount of compensation which should be paid for the services.

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Purdy v. City of Independence, 39 N.W. 641, 75 Iowa 356, 1888 Iowa Sup. LEXIS 345 (iowa 1888).

39 N.W. 641 (Purdy v. City of Independence) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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