Sherrett v. Portland

147 P. 382, 75 Or. 449, 1915 Ore. LEXIS 220
CourtOregon Supreme Court
DecidedMarch 30, 1915
StatusPublished
Cited by7 cases

This text of 147 P. 382 (Sherrett v. Portland) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sherrett v. Portland, 147 P. 382, 75 Or. 449, 1915 Ore. LEXIS 220 (Or. 1915).

Opinion

Mr. Justice Harris

delivered the opinion of the court.

The validity of the proceedings was challenged on the ground that notices had not been posted at the termini of the proposed improvement; but the evidence [454]*454shows that notices were posted in full compliance with the charter. It was asserted in the complaint that the papers in which the notices were published were not newspapers within the meaning of Sections 376, 379, of the charter, which direct that the notices shall be published in the “city official newspaper”; and the complaint further alleged that the filing of a remonstrance barred any further proceedings in the making of the improvement. The evidence fails to sustain the claim made in the complaint that the notices did not appear in the proper paper, and the evidence also discloses that the signers of the remonstrance did not represent two thirds in area of the property within the assessment district, as required by Section 377, of the charter. The plaintiffs questioned the work performed by the contractor, and claimed that the plans and specifications had not been fully complied with; but we learn from the record that the city had declined to accept the improvement in its entirety, and that at the time of the trial the Consolidated Contract Company was engaged in rebuilding a considerable portion of the improvement. The record contains no information of what occurred thereafter, and consequently there is no way of knowing whether the work was finally completed in full compliance with the terms of the contract. The objecting property owners earnestly insist that the contract made with the Consolidated Contract Company was void because the council specified Hassam pavement, thereby preventing competition, and this phase of the case stands out as the prominent feature of the controversy.

The first step to be taken in the discussion is to ascertain the provisions of such part of the charter as [455]*455may be material to tbe question involved. Section 374 of tbe charter reads:

‘ ‘ The council, whenever it may deem it expedient, is hereby authorized and empowered to order the whole or any part of the streets of the city to be improved; to determine the character, kind, and extent of such improvement; to levy and collect an assessment upon all lots and parcels of land specially benefited by such improvements; to defray the whole or any portion of the cost and expense thereof, and to determine what lands are specially benefited by such improvement, and the amount to which each parcel or tract of land is benefited.”

Section 375 directs:

“Whenever the council shall deem it expedient or necessary to improve any street, or any part thereof, it shall require from the city engineer plans and specifications for an appropriate improvement, and estimates of the work to be done and the probable cost thereof; and the city engineer shall file such plans, specifications and estimates in the office of the auditor. * * If the council shall find such plans, specifications, and estimates to be satisfactory, it shall approve the same. * * The council shall, by resolution, declare its purpose of making said improvements, describing the same. * * ”

Provisions are made for the publication and posting of notices and the filing of remonstrances, and then Section 378, specifies that, unless a sufficient remonstrance is filed—

“the council shall be deemed to have acquired jurisdiction to order the improvement to be made, and the council may thereafter, and within three months from the date of the final publication of its previous resolution, by ordinance, provide for making said improvement, which shall conform in all particulars to the plans and specifications previously adopted.”

[456]*456We read in Section 379:

“Upon the approval of said ordinance by the mayor, or if the same shall become valid without his approval, the auditor shall present to the executive board at its next regular meeting, a copy of said ordinance and the, estimates, plans, and specifications, previously prepared by the city engineer and adopted by the council. Thereafter, the said executive board, without delay, shall give notice by publication, for not less than five successive days in the city official newspaper, inviting proposals for making said improvement. The executive board shall have the power to award the contract or contracts for said improvement. * * Such contract or contracts shall be let to the lowest responsible bidder for either the whole of said improvement or such part thereof as will not materially conflict with the completion of the remainder thereof, but said board shall have the right to reject any or all proposals received. * * ”

The plaintiffs argue that the mandate of the charter that “such contract or contracts shall be let to the lowest responsible bidder” precludes the council from selecting a patented pavement, before calling for bids, and specifying such pavement as the only kind that will be accepted; that to select only one kind of pavement is to throttle competition if the kind chosen is patented; that in the very nature of things there can only be one bidder, and therefore no “lowest responsible bidder, ” if a patented improvement is alone made acceptable, since no person except the patentee is empowered to bid; and that the closing of the doors to competition has the effect of creating a monopoly which of itself is sufficient to render the contract void.

The position taken by the defendants is that by the terms of the charter the council is expressly empowered to determine the character and kind of improvement; that the power to determine the kind of [457]*457improvement is general, and not limited, and that therefore authority exists for the selection of a patented pavement; that, if the improvement chosen happens to be protected by letters patent, still all the competition is afforded which the circumstances will permit; and that, even though the patentee be the sole bidder, nevertheless he is the lowest bidder.

The'question of the validity of previously selecting a designated patented pavement and making it the only kind upon which bids will be received or considered has presented a broad field for judicial debate; and from the discussion have come two widely divergent rules. One view is that a municipality is without authority to specify any patented pavement as the only one to be used in a street improvement because to do so would be completely to eliminate competition, foster monopoly, and promote favoritism, dishonesty and graft. This doctrine was announced by the Supreme Court of "Wisconsin in Dean v. Charlton, 23 Wis. 590 (99 Am. Dec. 205), wherein that court says:

“But another objection is taken, which goes to the foundation of the whole proceeding; and the conclusion to which a majority of the court have come upon that will preclude the necessity of examining any of the other questions. This objection is based upon the provisions of the charter requiring all work to be let by contract to the lowest bidder, and the fact that the right to lay the Nicolson pavement is a patented right, and was owned for the State of Wisconsin by one firm in the City of Milwaukee. It is said that the charter authorizes a contract only for such work as is open to competition, and that this work was not open to competition, because nobody had any legal right to do it except the one firm that owned the patent.

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Cite This Page — Counsel Stack

Bluebook (online)
147 P. 382, 75 Or. 449, 1915 Ore. LEXIS 220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sherrett-v-portland-or-1915.