Morrison v. Inhabitants of Bernards
Morrison v. Inhabitants of Bernards
Opinion of the Court
The opinion of the court was delivered by
The first fault found with this declaration is, that it dees not show that the bonds sued on are those of the inhabitants of the township of Bernards, the defendant in the action. The theory of the counsel of the defendant seems to be, that the act of the 9th of April, 1868, (Pamph. Laws, p. 915,) which relates to this subject, does not authorize the commissioners to create these obligations in the name of the township.
But this construction, I think, is not consonant either with the language or spirit of the act. The general scope of this law is this: It provides for the appointment, in a prescribed mode, of three commissioners, who are empowered “to borrow on the faith and credit” of the township, certain sums of money, “and to execute bonds therefor, under their hands and seals respectively.” This language is clearly indicative of the legislative purpose to bind the township to the payment of the money thus to be borrowed. This money was designed for the use of the township, in the construction of what must be deemed a public work, if we are to give the faintest semblance of legality to the law itself. So the loan is to be obtained on the faith and credit of the township, a ■pledge which seems naturally to imply that the obligation of payment is to be put upon the corporate body. And a similar implication, but one of greater force, arises from the direc
In the second place, it is insisted that, on the admission that the bonds in question are to be regarded as the obligations of the township, a suit will not lie upon them, because the statute itself prescribes the mode in which the money is to be raised, and that it cannot be raised in any other way. In the language of the brief of counsel, the proposition thus asserted is expressed in this form : “ Where the right is given by a statute which prescribes a remedy, the remedy thus prescribed is the only one that can be had.”
Among the cases cited in support of this doctrine, is that of Reock v. The Mayor, &c., of Newark, 4 Vroom 129. But I think that neither this authority, nor any of the others which are referred to, are at all applicable in the present case. The general rule undoubtedly is, that when the right
But in the present instance, there is a contrary intent apparent on the face of this statute. Why is a bond to be given to the lender of the money, if a suit cannot be brought upon it ? The statute exacts a formal promise, under seal, to pay the specified sum at a particular time, and the idea seems inadmissible that this is to be looked upon as a mere formality, destitute of all practical effect. The capacity to support a suit, is a part of the nature of sealed instruments, stipulating for the payment of money. When, therefore, the statute directs a bond to lie given, it substantially declares that an action shall lie if such obligation should not be redeemed. It would be quite as reasonable to hold that the seals on these bonds do not import a consideration, as it would be to hold that the bonds themselves are not enforceable by suit. I can see nothing in the provisions of this act which will prevent these instruments from being put into effect according to the qualities usually inherent in that class of obligations to which they belong. The statutory regulations relating to the mode of the assessment of the moneys, and the imposition of the burthen upon particular lands, can be carried into full effect. But with these matters, the holder of the bonds has no connection. In this particular, I find nothing exceptionable in a suit upon these instruments.
A third objection is urged against the sufficiency of this pleading. This arises from the fact that the plaintiff has not shown the legal power of the commissioners to make the bonds which form the basis of the action'.
The second section of the statute in question empowers the commissioners to borrow money, but provides that “ no such debt shall be contracted of bonds issued by said commissioners, &c., until the written consent shall have been obtained of a majority of the tax payers.” There is a further direction, that the signatures to such consent shall be proved by
It thus appears that these commissioners had no authority to issue the bonds in controversy, unless the consent of the requisite number of tax payers was given, and it is insisted, that as this consent is an essential element in the plaintiff’s case, such fact must appear in the declaration.
The counsel of the plaintiff, assailing this position, replies that it is shown that these bonds were formally made and issued, and have fairly come into the possession of the present holder, and that the defendant is estopped from denying that the conditions existed which entitled its own officers to create these instruments. But I cannot assent to this view. There are, undoubtedly, instances to the effect that a corporation will not be allowed to gainsay the act of their officers on the pretext of a want of competency to do the particular act in question. But this rule obtains only when the authority which is challenged depends upon the existence of facts extrinsic of the charter, the knowledge of which is accessible only to the corporators, and which are not known to the party dealing with the corporation. And it may also be doubted whether the principle is ever applicable except when the officer who ostensibly gives the assent of the company to any transaction, is the general agent of the corporate body. But this defence, that the officer has done an act in contravention, or in excess of the chartered right, will not be permitted to prevail when the person in whose favor such act has been done, is presumed to have been ignorant of such transgression. But when the provisions of a statute have been infringed or disregarded by public officers, and such provisions áre publicly known, the statute must have effect,
It is advisable, further, to remark, that an apparent defect exists in this pleading, which is r.ot noticed in the briefs. The fourteenth section of the act requires these bonds to be registered in the county clerk’s office, and that the words “ registered in the county clerk’s office,” shall be printed or written across the face of each bond, attested by the signature of the county clerk, when so registered, “and it is then declared that no bond shall be valid unless so registered.” The act appears to make this ceremony as essential to the legal existence of the bond, as is either signing or sealing. If this is so, the registration is a face that the plaintiff would have to prove in making out his case, and consequently, must be shown in the declaration.
To avoid any misapplication of this case, it is proper to add that the question raised in the briefs of counsel, and the point as to the necessity of an averment of the due registration of the bonds, are the only matters which have been considered by the court.
Cited in Hackensack Water Co. v. De Kay, 9 Stew. Eq. 548.
Reference
- Full Case Name
- THOMAS A. MORRISON, THOMAS H. MORRISON AND GARDINER S. HUTCHENS v. THE INHABITANTS OF THE TOWNSHIP OF BERNARDS, IN THE COUNTY OF SOMERSET
- Status
- Published