State v. Robinson

2 N.W.2d 183, 71 N.D. 463, 140 A.L.R. 332, 1942 N.D. LEXIS 80
North Dakota Supreme Court·Decided January 27, 1942·No. Cr. 183·Published·Cited by 9 cases

Opinions

Morris, J.

This proceeding comes to us upon a certification from the district court of Burleigh county; Hon. G. Grimson, Special Judge presiding. The certification was made under the provisions *464 of §§ 7849b1 — 3, 1925 Supplement to Compiled Laws. The matter involves a criminal prosecution for an alleged violation of § 9829, ND Compiled Laws 1913, which reads as follows: “Officer’s fraud. Every public officer, being authorized to sell or lease any property or make any contract in his official capacity, who voluntarily becomes interested individually in such sale, lease or contract, directly or indirectly, is guilty of a misdemeanor.”

The defendant was brought to trial upon an amended information charging that he violated the above section by voluntarily becoming-interested individually in a contract entered into by the defendant in his official capacity as Motor Vehicle Registrar of the state of North Dakota, whereby there was furnished to the Motor Vehicle Registration Department of the state of North Dakotá, certain gasoline, grease and motor oil and automobile parts of the aggregate value of $31.40, placed in or on automobiles belonging to that department, at Washburn in McLean county, and that thereafter the defendant in Burleigh county approved payment for said items from the funds appropriated to said department by preparing and approving, in his capacity as registrar, a voucher in favor of the Washburn Motor Company to which he certified as creditor in the capacity of secretary of the Washburn Motor Company, a corporation, in which he was and is individually interested. It is further charged that he thus became individually interested in the contract to pay for the merchandise so furnished.

Pursuant to the provisions of chapter 132, ND Session Laws' 1939, the State furnished the defendant a bill of particulars in which it is stated:

“2. That at and during all the times mentioned in the said amended criminal information the above named Defendant was and still is a stockholder and officer, to wit: secretary of Washburn Motor Company, a corporation, with its sole place of business located in Washburn, in McLean County, State of North Dakota;
“3. That a portion of the merchandise consisting of gasolin'e, grease, oil and automobile parts mentioned in the said amended criminal information was furnished to the above named Defendant himself between the said dates of April 5th and April 21, 1941, and put in or on *465 an automobile, belonging to tbe Department of Motor Vehicle Registration of the State of North Dakota at the place of business of the said Washburn Motor Company in McLean County, North Dakota, while the said Defendant was personally present; that such portion of said merchandise was ordered and authorized to be put in and upon said automobile personally by said Defendant at such time and place;
“4. That the remaining portion of such merchandise described in Plaintiff’s amended criminal information was furnished to and put in or upon an automobile belonging to said Department at Washburn, North Dakota, upon the request of an employee of said Motor Vehicle Registration Department, which said employee had previously at Bismarck, North Dakota, been authorized and directed by the above named Defendant to purchase such merchandise and take delivery thereof at Washburn, North Dakota;
“5. That on the 20th day of May, 1941, the Defendant at Bismarck, North Dakota, did prepare or cause to be prepared a voucher in favor of Washburn Motor Company covering all of the said purchases hereinbefore referred to, both those mentioned in Paragraphs 3 and 4 herein, totaling the sum of $31.40; which said voucher was thereupon certified to as required by law by the said B. E. Robinson in behalf of the said Washburn Motor Company as creditor, and which voucher was also approved in behalf of said Department by the said Defendant as such Registrar and thereupon submitted to the proper authorities of the State of North Dakota with the request that the same be paid, and that the said voucher was thereafter duly paid from funds appropriated to the said Motor Vehicle Registration Department.”

The first question certified to us is

QUESTION NUMBER I.
“Whether the fact that the defendant, B. E. Robinson, was at all times in question a stockholder in and secretary of the Washburn Motor Company makes the defendant ‘interested individually’ within the meaning of section 9829 in contracts of such corporation.”

The answer to this question must be found in the construction to be placed upon § 9829. ND Comp. Laws 1913, which we have quoted at the *466 beginning of this opinion. Similar laws appear in many states and also in other legislative enactments in this state. The constructions of similar statutes given by other courts are valuable and by analogy and reasoning, aid us materially in the solution of the problem at hand. The neat question is whether or not a stockholder and officer of a corporation is individually interested directly or indirectly in a contract which he makes as an official of the state with a corporation in which he is a stockholder.

First we turn our attention to the consideration of whether a stockholder may be considered to be interested directly or indirectly in such a contract as the statute forbids. Leaving, for the moment, the effect to be given to the word “individually,” we find that Wisconsin has a statute forbidding an officer of that state or its subdivisions from acquiring “any pecuniary interest, directly or indirectly, present or prospective, absolute or conditional, in any way or manner,” in any contract made by him in his official capacity. The statute provides a criminal punishment and also makes a contract, entered into in violation thereof absolutely void. This statute came before the supreme court of Wisconsin in Reetz v. Kitch, 230 Wis 1, 283 NW 348. The case involved an action to restrain the disbursement of city funds in connection with the purchase of a building from a bank in which the city clerk was a stockholder. In discussing the relationship between the city clerk and the bank, the court said: “He was a stockholder in the bank, and this court has held many times that the stockholder in a corporation has such an interest as will disqualify him from acting on behalf of a city or other governmental unit. Bissell Lumber Co. v. Northwestern Casualty & S. Co. 189 Wis 343, 207 NW 697; Swiss v. United States Nat. Bank, 196 Wis 171, 218 NW 842; Washington County v. Groth, 198 Wis 56, 223 NW 575.” See also State v. Bennett, 213 Wis 456, 252 NW 298. Thus, it appears that the supreme court of Wisconsin has reached the conclusion that a stockholder in a corporation is interested at least indirectly in a contract between the corporation in which he owns stock and a municipality of which he is an official.

Free access — add to your briefcase to read the full text and ask questions with AI

State v. Robinson, 2 N.W.2d 183, 71 N.D. 463, 140 A.L.R. 332, 1942 N.D. LEXIS 80 (N.D. 1942).

2 N.W.2d 183 (State v. Robinson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

State v. York
326 N.W.2d 208 (North Dakota Supreme Court, 1982)
Bumann v. Maurer
188 N.W.2d 740 (North Dakota Supreme Court, 1971)
State v. Heasley
134 N.W.2d 789 (North Dakota Supreme Court, 1965)
State v. Hooten
122 So. 2d 336 (District Court of Appeal of Florida, 1960)
State v. Douglas
16 N.W.2d 489 (South Dakota Supreme Court, 1944)
Robeen v. State
15 N.W.2d 69 (Nebraska Supreme Court, 1944)
State v. Tennyson
14 N.W.2d 168 (North Dakota Supreme Court, 1944)