Rich v. Errol

51 N.H. 350
CourtSupreme Court of New Hampshire
DecidedDecember 15, 1871
StatusPublished
Cited by5 cases

This text of 51 N.H. 350 (Rich v. Errol) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rich v. Errol, 51 N.H. 350 (N.H. 1871).

Opinion

* Smith, J.

It does not appear that the defendants have denied the signature of the note in the manner prescribed by the 44th rule of court. A failure to deny the signature operates as a conclusive admission of the authority of the selectmen. Great Falls Bank v. Farmington, 41 N. H. 32; Williams v. Gilchrist, 11 N. H. 535. But, as the defendants may hereafter get relieved from the rule and be permitted to deny the sig-nature (Aldrich v. Barron, Coös, July term, 1870), we propose to consider the case as if the question of authority was open to them.

The note was given for money loaned to the selectmen, which they professed to borrow for the use of the town. It does not appear that there was any vote of the town authorizing the selectmen to effect this loan. The power conferred upon the selectmen by the vote of August 27, 1864, had been exhausted some eight months prior to the date of this note ; and, as it has not been contended that the selectmen represented to West that in borrowing of him they were acting under tha^ vote, it is unnecessary to consider what would have been the effect of such a representation. See Lowell Five Cent Savings Bank v. Winchester, 8 Allen 109; Harris, J., in Supervisors of Rensselaer v. Bates, 17 N. Y. 242, p. 246. It does not appear whether the money borrowed of West was used for the benefit of the town or not. The town contend that the facts now admitted are insufficient to make out a prima facie case against them, but that the plaintiff must prove the additional fact that the money came to the use of the town. To determine the right of the original payee to recover upon the state of facts here presented, it is necessary to decide whether selectmen have authority ex officio, without a vote of the town, to borrow money upon the credit of the town.

The Revised Statutes prescribe certain specific duties to be performed by selectmen, and also (Rev. Stats., ch. 34, sec. 2) the general duty to “ manage all the prudential affairs of the town ” — an expression found in the Provincial statute of 1679, 1680 — the earliest to which we have access. See vol. 8, N. H. Hist. Society Collections, p. 30. Under these statutes, selectmen have not been regarded as the general agents of the town, “clothed with the general powers of the corporate body for which they act.” “ They can only exercise such powers and perform such duties as are properly incident to the special and limited authority conferred on them by their office.” They are “ empowered to do only such acts as are required to meet the exigencies of ordinary town business.” As to the general powers and duties of selectmen, see [355]*355Carlton v. Bath, 22 N. H. 559, 564-558; Smith v. Cheshire, 13 Gray 318. There is some business which can be transacted only by “ the towns themselves, in their corporate capacity.” The power to borrow money is not conferred upon the selectmen by the express provisions of any statute. Is this power an incident annexed by implication to the powers expressly conferred upon these officers ? In considering this question, it should be borne in mind that there are obvious differences, in origin, purpose, and general scope, between municipal corporations and private corporations, which may well justify courts in refusing to imply a legislative intention to delegate to selectmen of towns as full powers as those often exercised by directors of railroads or manufacturing corporations.

In determining the meaning of the ancient statutory phrase, — “ to manage all the prudential affairs of the town,” — it is worthy of note that the nearer we get-to the time of the framers of the early statutes, the more restricted is the view that we find taken of the powers of selectmen. Thus, in Sanborn v. Deerfield, 2 N. H. 251, where it was held that a selectman, who himself advances funds to pay a debt due from the town, may maintain an action against the town for reimbursement, the power of selectmen under any circumstances to bind the town by a negotiable note was expressly left undecided, and was evidently regarded as doubtful. In the earlier case of Otis v. Barrington, decided in the superior court, Strafford county, September term, 1804, the court explicitly denied the power of the selectmen to bind the town by a contract for the removal, from Maine to Barrington, of a pauper chargeable to Barrington. A manuscript report, in the handwriting of one of the members of that court, shows that the plaintiff, who brought assumpsit against the town upon the contract made by the selectmen, was nonsuited, — the court saying that “ towns were not bound by contracts made by selectmen. They could use the town’s money over which they have control in maintaining paupers, &c., but they cannot pledge the credit of the town, or bind them in any contract like the present. If they could they might subject the town to any extent.”

The theory of the framers of the statutes seems to have been that the towns should obtain their funds, for the most part, “ periodically, by means of annual taxation ; ” and, in case of exigencies, by the assessment of special taxes. It is, however, “ impossible, by any degree of care, to adjust their means to their wants so accurately but that exigencies will arise,” rendering a resort to the credit of the corporation expedient. No doubt has been suggested, in the present case, of the power of the town to raise money by loan ; but the question is, whether the selectmen, in their discretionary management of the prudential affairs of the town,” can ex officio exercise this power without special authority. There are undoubtedly some instances in which the existence of this power in the selectmen might save the town some delay and expense in sudden emergencies. ’ But the existence of this power cannot be said to be absolutely necessary. The selectmen can at any time call a town-meeting upon fifteen days’ notice, to see if the town [356]*356will give tliem special authority to borrow. If an execution is issued against tlie town, the statute gives the selectmen power to assess a tax sufficient to pay the same, and to collect the same within thirty days. Rev. Stats., ch. 198, sec. 3. (A reference to the earlier statute of Dec. 20, 1797, shows that the provision in sec. 3, ch. 198, Rev. Stats., —“ that the selectmen shall pay such execution, or shall assess,” &c.— contemplates payment only in case the selectmen have any money “ in their hands, or in the town treasury.” It does not impliedly authorize payment out of funds borrowed for the purpose.) It seems, therefore, that selectmen can, without much delay, apply to the town for power to borrow ; and that, in the emergency least likely to admit of delay, the statute authorizes them to assess a tax without a vote of the town authorizing the same.

• Selectmen have power, in some instances, to contract upon the credit of the town for property or labor requisite to the fulfilment of town duties ; as, for example, the repair of bridges, the relief of paupers, or the supply of liquors for the town agency. See Andover v. Grafton, 7 N. H. 298; Great Falls Bank v. Farmington, 41 N. H. 32. And power ' to contract the debt carries with it power to give a suitable acknowledgment of the indebtedness in the form of a promissory note — same authorities. But there is an essential difference between the right to contract for the direct accomplishment of a proper object, and the right to borrow money for the ostensible purpose of accomplishing the same end.

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Bluebook (online)
51 N.H. 350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rich-v-errol-nh-1871.