State ex rel. Kansas City Loan Guarantee Co. v. Kent

71 S.W. 1066, 98 Mo. App. 281, 1903 Mo. App. LEXIS 73
CourtMissouri Court of Appeals
DecidedFebruary 2, 1903
StatusPublished
Cited by10 cases

This text of 71 S.W. 1066 (State ex rel. Kansas City Loan Guarantee Co. v. Kent) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Kansas City Loan Guarantee Co. v. Kent, 71 S.W. 1066, 98 Mo. App. 281, 1903 Mo. App. LEXIS 73 (Mo. Ct. App. 1903).

Opinion

ELLISON, J.

The relator is the assignee of an account of $8.75 for labor in the stables of the waterworks department of Kansas City, Missouri performed by one Dock Wilson. The defendant is the. auditor of Kansas City and refused to give to relator, as such assignee, a city warrant for said sum. The relator thereupon instituted this proceeding by mandamus to compel the delivery of the warrant. The trial court granted the writ and the city appealed. The refusal of the city auditor is based upon the following ordinance of the city, claimed to prohibit an assignment of wages or salaries, to-wit:

“Section 1. No person shall combine his claim against Kansas City for salary or for any other demand, with that of another .or others, thereby procuring one warrant for both or all of said claims instead of two or more warrants, and no warrant shall be issued by the city auditor or countersigned by the comptroller or paid by the city treasurer, to any person other than the one who has actually done the wotk, performed the services, supplied the material, furnished the supplies, or has complied with a contract out of which his claim arose.

“Section 2. The city auditor shall allow no person to receipt the auditor’s books for warrants issued other than the person actually doing the work, performing the services, supplying the materials, or who has' [285]*285complied with the terms of a contract existing between him and Kansas City; provided, however, that in the event of non-residents desiring to receipt for warrants on said auditor’s book, they may do so by resident agent or attorney duly authorized in writing; provided, further, that where such non-resident has no resident agent the city comptroller shall forward to him his warrant.

‘ ‘ Section 3. Any person failing, neglecting or refusing to comply with any of the provisions or requirements of this ordinance shall be fined by the police judge not less than five dollars nor more than five hundred dollars and any officer or employee of the city, who shall sell or assign his unearned salary, unearned wages, or earnings, shall thereby be deemed to have committed an act which is hereby declared to be sufficient cause for his removal.”

The ordinance is not well drawn. The first section prohibits the issuing or payment of a warrant to any other person than the one who performed the service for which payment is asked. The second section prohibits any other person than the one performing the service from receipting for a warrant. And finally, the third section makes it unlawful for any officer or employee to sell or assign his unearned salary or wages. It would have been better if the first section had, in terms, forbid or made unlawful, an assignment of a claim, earned or unearned, as the city counsel might believe the city’s interest to demand. But the relator puts its right to the warrant on the ground that the wages were wholly earned when assigned to it, and attacks the ordinance on the theory that in so far as it seeks to prevent the assignment of wages which were wholly earned at time of assigmnent, it is void.

The defendant seems to seek to uphold the ordinance as a valid preventive of the assignment, whether the wages be earned or unearned, though he contends they were not wholly earned in this case. Relator’s po[286]*286sition discloses that if the .city had the power to* declare illegal an, assignment of wages wholly earned, no contention would he made over the right to prevent an assignment of wages which were unearned. So, therefore, the important consideration is as to the power of the city, by ordinance, to make illegal'the assignment of wages which have been earned.

1. There can be no doubt that any valid provision of an ordinance in relation to the employment of city employees enters into the contract of employment as effectually as if written in the contract. This is so held in all instances where the law is one enacted by the Legislature or the Congress; whether the law be local or general. State ex rel. Groodnow v. Police Commissioners, 71 S. W. 221. In that case it was said “that the defendants hold their offices by virtue of the Act of 1874, and amendments thereto*, and not by force of the city charter, and that the same is true of the relator. It also follows that when relator was appointed a member of the police force* by virtue of the act, he* accepted that appointment subject to all the terms and provisions* of that act as fully as if those terms had been specified in his commission.” And it is so held as applicable to the valid enactment of a municipal council. St. Charles v. Hackman, 133 Mo. 634, 642.

2. It therefore comes to this question: Is it a valid contractual provision to insert in a contract with’ a municipality that a claim for the wages arising thereunder shall not be assigned? We* think that it undoubtedly is. City of Omaha v. Standard Oil Co., 55 Neb. 337; Burck v. Taylor, 152 U. S. 634.

' While the right to assign a matured claim may be a fundamental right existing in the owner of the* claim, as contended by relator, it does not follow that he may. not curtail such right by contract. And so* it is said: “A contract to pay money may doubtless be assigned by the person to whom the money is payable, if there is nothing in the terms of the contract which manifests the inten[287]*287tion of the parties to it that it shall not he assignable” (italics onrs). Delaware Co. v. Diebold Safe Co., 133 U. S. 473, 478. “At the present day, .no doubt, an agreement to pay money or to deliver goods may be assigned by the person to whom the money is to be paid or the goods are to be delivered, if there is nothing in the terms of the contract, whether requiring something to be afterwards done, or by some other stipulation, which manifests the intention of the parties that it shall not be assignable.” Arkansas Smelting Co. v. Belden Mining Co., 127 U. S. 379, 387.

A right which, for a consideration, is contracted away is not any longer a right to be asserted by the contractor. The agreement in this case was that the city would pay to Wilson a stipulated sum per day, if he would do certain work and surrender his right of assignment of his claim for such work to a third party, Wilson had as much legal capacity to agree to forego his ordinary right of assignment as he had to agree to perform the labor itself.

3. It is claimed that while these views may be correct, they are founded on the assumption that the ordinance' which we have inserted in the contract between Wilson and the city as a part of it, is valid. But relator claims that it is invalid, as being beyond the power of the city, and therefore it could not become an effective part of the contract. We must also rule this .point against relator.

. A city with the comprehensive charter possessed by Kansas City, and usually by all municipalities in this country, has a dual capacity, one as a public corporation exercising powers of government within the terms of its charter, and the other more in the nature of a private capacity whereby it makes contracts (also within the terms of its charter) for its own betterment, as individuals, may. The distinction between the two capacities was fully considered and set forth in Bullmaster v. St. [288]*288Joseph, 70 Mo.

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Bluebook (online)
71 S.W. 1066, 98 Mo. App. 281, 1903 Mo. App. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-kansas-city-loan-guarantee-co-v-kent-moctapp-1903.