State ex rel. Knollman v. King

33 So. 776, 109 La. 799, 1903 La. LEXIS 441
CourtSupreme Court of Louisiana
DecidedJanuary 19, 1903
DocketNo. 14,586
StatusPublished
Cited by6 cases

This text of 33 So. 776 (State ex rel. Knollman v. King) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Knollman v. King, 33 So. 776, 109 La. 799, 1903 La. LEXIS 441 (La. 1903).

Opinion

On Application for Writs of Mandamus and Prohibition.

PROVOSTY, J.

The charter of the city of New Orleans requires that all contracts of the city for more than $500 shall be let out to the lowest responsible bidder after advertisement. A requirement of this kind is mandatory, and a contract given out without observance of it is null and void. Redersheimer v. Mayor, 52 La. Ann. 2089, 28 South. 299; Dillon, Mun. Corp. § 466 (388); Am. & Eng. Ency. of Law (1st Ed.) vol. 15, p. 1093. With regard to the strictness with which requirements of this kind are enforced, Tiedeman, Mun. Corp. § 172, has the following:

“Yet, if notice, advertising, and similar preiiminaries are required by statute, neither the corporation nor any of its officials can make a valid contract, which shall bind the corporation, unless the statute is rigidly complied with. So, if there be an informality or irregularity in giving the notice, in writing proposals, or in selecting the proper newspaper in which to advertise for bids, or in the substitution of advertising, when the posting of a printed notice is required, the contract may be avoided. But a mere typographical error, the notice in other respects being sufficient, by which no one was misled, is not material.

“In fairness to bidders, it has been held that they must be supplied with such information as will enable them to act intelligently; and the bidder should not be compelled to furnish his own plans and specifications, which the notice must provide for. So, if the specifications be indefinite as to the quantity and quality of the materials required, the contract based thereon will be void. Nor can a public officer, required to advertise for bids, fix therein an arbitrary price for certain specified work.”

The city of New Orleans advertised for bids on a contract for the construction of an electric light plant, the cost of which it was estimated would be not less than $850,000. How the city proposed to obligate herself to pay this sum, or whatever sum might turn out to be the price of the contract, was made a specification of the contract, as follows:

“Payment, (a) The cost of the lighting and power system and the interest on deferred payments will be paid from the alimony and reserve fund accounts in such annual installments as may be necessary to extinguish the entire debt within a period of not exceeding ten (10) years.

“(b) Deferred payments will bear interest at the rate of 5 per centum per annum. Interest on deferred alimony account payments will be paid from the alimony appropriation; interest on deferred reserve fund account payments will be paid from the reserve fund appropriation.

“(c) The city council obligates itself to write as item 1 in the budget of expenditures, each year for ten (10) consecutive years, not less than eighty-five thousand dollars ($85,-000).

“The city council further obligates itself [801]*801to provide, in ten (10) equal consecutive annual installments, in item 4 of the reserve fund, budget of expenditures, such amount, over and above the eighty-five thousand dollars ($85,000) that will be written in item 1 of the budget of expenditures, as may be necessary to entirely and fully liquidate the contract price for the construction of the lighting and power system, together with accrued interest on deferred payments.

“(d) The city of New Orleans reserves the right to, at any time it may elect, cancel any or all outstanding certificates, or to make part payment on outstanding certificates, in which event interest will be paid for the time only that payment of the principal has been deferred.

“(e) Partial payment certificates to the extent of 80 per cent, of the value of the completed work shall be issued monthly. The said partial payment certificates shall not exceed one-fifteenth part including principal and interest, of the total amount to be paid out of the alimony appropriation.

“On completion of the entire lighting and power system, and its acceptance by the city engineer and city electrician, they will issue to the contractor certificates of payment, which shall include all amounts reserved and balances due.”

The advertisement first appeared on the 7th of February, and ran to the 7th of April. Four days before its first appearance, namely, on the 3d of February, this court had handed down its decision in the case of Woulfe v. City of New Orleans et al., 107 La. 777, 32 South. 88. In that case a contract of the city for the repaving of Canal street, the principal street of the city, was held to be null and void, because the price was payable out of the future revenues of the city, and because certificates to serve as evidence of the amount due the contractor were to be issued as the work progressed. The decision was based upon a statute of long standing, Act No. 30 of 1877, Extra Session, prohibiting the police juries and the municipalities of the state from anticipating their revenues. This act, which has a material bearing on the present case, is as follows:

“Section 1. Be it enacted, etc., that no police jury of any parish, nor any municipal corporation in this state, shall make any appropriation of money for any year which appropriation separately, or together with any other appropriation or appropriations of the same year, shall be in excess of the actual revenue of said parish or municipal corporation for that year.

“Sec. 2. Be it further enacted, etc., that no police jury of any parish nor municipal corporation in this state shall approve any claim or make any expenditure which shall separately, or together with other claims approved or expenditures made, be in excess of the actual revenues of that year.

. “Sec. 3. Be it further enacted, etc., that the revenues of the several parishes and municipal corporations of this state, of each year, shall be devoted to the expenditures of that year; provided, that any surplus of said revenues may be applied to the payment of the indebtedness of former years.

“Sec. 4. Be it further enacted, etc., that the police juries of the several parishes in this state may and are hereby authorized and empowered to contract for fixed and determined sums of money with those officers who receive in compensation for services under existing laws, fees, commissions or mileage from said parishes; provided, the compensation allowed shall not exceed fifty per centum of the fees allowed by the laws of the state.

“See. 5. Be it further enacted, etc., that no (evidence of indebtedness or) warrant for the payment of money shall, after the first day of October, eighteen hundred and seventy-seven, be issued by any officer of any parish or municipal corporation in this state, except against money actually in the treasury of said parish or municipal corporation. Any person violating the provisions of this section shall, on conviction, be punished by imprisonment or fine, or both, at the discretion of the court; provided, that this section shall not apply to the certificates issued to jurors and witnesses for their services in the courts.

“Sec. 6. Be it further enacted, etc., that all laws in conflict with this act are hereby repealed.”

It is observed that the stipulation for payment out of the revenues of future years, contained in this electric light plant contract, was apparently in direct contravention of this act of 1877. The act prohibits the anticipation of revenues and the issuing of evidences of indebtedness, and the contract pro[803]

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Cite This Page — Counsel Stack

Bluebook (online)
33 So. 776, 109 La. 799, 1903 La. LEXIS 441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-knollman-v-king-la-1903.