Reliance Manufacturing Co. v. Board of Prison Commissioners

170 S.W. 941, 161 Ky. 135, 1914 Ky. LEXIS 67
CourtCourt of Appeals of Kentucky
DecidedNovember 19, 1914
StatusPublished
Cited by14 cases

This text of 170 S.W. 941 (Reliance Manufacturing Co. v. Board of Prison Commissioners) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reliance Manufacturing Co. v. Board of Prison Commissioners, 170 S.W. 941, 161 Ky. 135, 1914 Ky. LEXIS 67 (Ky. Ct. App. 1914).

Opinion

Opinion op the Court by

Judge Carroll

— Reversing.

The Board of Prison Commissioners have control of the penitentiaries of the State and convict labor therein confined. By section 3807 of the Kentucky Statutes it is provided that “it shall be the duty of the commissioners to hire out to a contractor or contractors all the convicts able to perform manual labor, to be worked within the walls of the penitentiaries. Such hiring shall be to the highest and best bidder, after due advertising, and the labor in both penitentiaries may be hired to one person, or the labor in whole or in part in each penitentiary may be hired to different contractors.

* # * The price agreed to be paid shall be paid in monthly or quarterly installments by the contractor as the commissioners may determine, and it is hereby made a condition precedent to the contract that on failure of lessee or lessees to pay any installment within one month after same is due, the commissioners may elect to declare the lease forfeited for non-payment of rent, giving the lessees thirty days’ notice in writing declaring a forfeiture thereof, and the commissioners may take possession without further notice. The term for which said convicts may be hired shall not be more than four years, with the privilege of renewal, and the contractor shall obligate himself to faithfully conform to all the rules and regulations that may be established by the commissioners touching all sanitary and police matters, and for the government of the prison. Upon the execution of the bond as above required, and the acceptance of the bid, the contractor shall be entitled to the labor of said convicts, the various shops and power therein belonging to the State. But if, after due advertisement as above set forth, the commissioners fail to secure such a bid as is acceptable to them, then they may hire the convicts to a contractor or contractors by private contract, and such contract, when made, shall be consummated in all respects, and shall contain the same stipu[138]*138lations and provisions as are required in this section for a contractor who hires said convicts by public bid. ’ ’

Under the power thus conferred, the board, in October, 1908, leased to ‘William Goodbar, a specified number of the convicts confined in the Eddyville Penitentiary. The contract stipulated that the Commonwealth should clothe and feed and keep under discipline the convicts so leased, and further provided that “the discipline of the entire penitentiáry shall be under the control J. the State authorities, and all employes of said second party, Goodbar, shall be governed by the rules and regulations of the penitentiary which may be promulgated from time to time by the authorities representing the State.”

It was further stipulated in the contract that “this contract is to be continued in force for four years from April 19, 1909, then at the option of the second party, and provided the party of the second part gives three months’ notice in writing of his intention to renew this contract before the expiration of the contract, a new contract shall be entered into for a period of four years at the same price and upon the same terms as in this contract.”

It was further stipulated that “it is distinctly understood that the party of the second part shall not sublet .any of the labor of the 175 convicts hereby leased without consent of the party of the first part.”

Some time after the execution of this contract Good-bar assigned the benefit of the contract to one J. W. McMullen, and soon thereafter McMullen assigned the contract and all benefits arising thereunder to the Sterling Manufacturing Company, and thereafter the Sterling Manufacturing Company assigned the contract to the present appellant.

Each of these assignments was consented to in writing by the Board of Prison Commissioners, and the consent to the assignment by the Sterling Manufacturing Company to the Reliance Manufacturing Company was as follows: “Said Commonwealth further consents to the transfer and assignment by said Sterling Manufacturing Company to the Reliance Manufacturing Company, a corporation, of all rights of said Sterling Manufacturing Company under the William M. Goodbar contract, dated October 16, 1908, and that said Reliance Manufacturing Company enjoy all of the rights of said; Sterling Manufacturing Company upon giving to said Commonwealth the bond required under said Goodbar [139]*139contract and described in tbe previous written consent given by said Commonwealth, dated December 7, 1910.”

The various assignees of G-oodbar, including the Reliance Manufacturing Company, complied with all the rules and regulations of the Board of Prison Commissioners and executed all bonds required. - In short, they took the place of Goodbar and discharged all of the obligations he assumed by virtue of the contract with him.

In January, 1913, the Reliance Manufacturing Company exercised its option to'renew the contract and. gave to the Board of Commissioners written notice of its desire, as provided for in the second clause of the Good-bar contract. Upon receiving this notice, or soon thereafter, the Board notified the Reliance Manufacturing Company that it declined to renew the contract, and thereupon this suit was brought asking that the Board of Commissioners be restrained from ousting the Reliance Company from the prison or from failing or refusing to furnish it the labor stipulated in the contract; and it was further prayed that the Board be compelled to renew the contract with the Reliance Manufacturing Company for an additional period, of four years from April 19, 1913.

There being really no issue of fact involved in the case, it was submitted upon the pleadings, exhibits and some evidence that had been taken, and judgment rendered dismissing the petition upon the ground, as stated in the judgment, that the several assignments of the contract were void as against the public policy of the State, and this being so, the contract with the Reliance Manufacturing Company should not have been renewed, as there was no obligation upon the part of the board to renew it.

It is the contention of counsel for the Reliance Company that as the Board of Prison Commissioners had the power and did consent to the several assignments of the Goodbar contract, the Reliance Company occupies the same position as would Goodbar if he were asking a renewal of his contract; and further insisted that as the contract as well as the statute under which it was made stipulated that it should be renewed for a term of four years at the election of the lessee, the Board of Prison Commissioners had no right or authority to refuse to renew the contract, and should have been compelled to do so by the processes of the court.

In behalf of the Commonwealth the argument is made [140]*140that the Prison Commissioners did not have the power to consent to the various assignments of the G-oodbar contract, and therefore the assignments conferred no rights on the assignees, and besides were void as contrary to public policy. And, further, that this suit can not be maintained against the board, as it is in fact a suit against the Commonwealth. It is also maintained that the stipulation in the contract for its renewal is not binding on the board, and this being so, the board cannot be compelled to renew it.

That the board had authority to make the contract with Goodbar is not disputed, nor could it be.

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Cite This Page — Counsel Stack

Bluebook (online)
170 S.W. 941, 161 Ky. 135, 1914 Ky. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reliance-manufacturing-co-v-board-of-prison-commissioners-kyctapp-1914.