Jacobson's Lifetime Buildings, Inc. v. City of Tulsa
Jacobson's Lifetime Buildings, Inc. v. City of Tulsa
Opinion of the Court
Plaintiff, Jacobson's Lifetime Buildings, Inc., brought this action to recover its damage arising out of an alleged breach of contract by the defendant, the City of Tulsa, a municipal corporation. The parties appear here in the same order as in the trial court, and we shall continue to refer to them by, their trial court designation.
Plaintiff's action is predicated on a contract between it and the defendant which was the culmination of a series of contracts between these parties arising out of the development of property by plaintiff for home sites. The property being developed by plaintiff was near to but not within the city limits of Tulsa. It was not serviced by the city sewer system. Several
Notwithstanding its specific agreement, the city subsequently permitted another developer to connect his sewer line, servicing ninety-one new home sites, to plaintiff's second sewer system. This action followed. The action initially was one against the other developer, but that defendant brought in the city as a defendant based upon their agreement and the plaintiff thereafter amended its petition and proceeded against the city alone for damages for breach of contract. The trial of the action was to the court. Defendant demurred to plaintiff's evidence and the demurrer was overruled, whereupon defendant elected to offer no evidence. Judgment was entered for plaintiff for $9,100 based upon plaintiff's evidence of a charge to others of $100 per lot for permission to connect to the sewer system. Plaintiff did not plead or prove that the city had adequate current revenue to pay this claim and
We are of the opinion that the trial court was correct in granting defendant a new trial, but we do not agree that City of Shawnee v. Thompson, supra, is applicable. It is not contrary to public policy, as defendant claims, for there to be private ownership of sewer systems connected to a public sewer system. Our statutes expressly recognize the legality of such an arrangement, 11 0.S.1951 § 275. And we also take it to be beyond dispute that a municipal corporation may make contracts relating to the operation by it of sewers as well as it may contract for any other purpose within its legitimate area of concern, 11 0.S.1951 § 563, so long as express constitutional and statutory prohibitions are observed. Ruth v. Oklahoma City, 143 Okl. 62, 287 P. 406; Selected Investments Corp. v. City of Lawton, Okl., 304 P.2d 967. See too, Dail v. Adams Bldg, Corp., 200 Okl. 451, 195 P.2d 755. The sewer facilities constructed by this plaintiff were owned by it, as its contract with the city expressly noted, and the city was to become the owner and operator only upon the occurrence of certain stated contingencies. This sewer was not constructed updn city streets as was the case in City of Shawnee v. Thompson, supra. These facts are sufficient to distinguish that case from this, and this contract is not unenforceable for the reasons stated in that opinion.
But the foregoing observations do not authorize a reversal of this order. The city has on all appropriate occasions in these proceedings made and preserved its record on the failure of plaintiff to plead or prove that the judgment sought is within the limits of available funds. There is no evidence that the municipality's current fiscal resources justify the entry of judgment against it on a claim arising out of contract. This being an action on contract, as plaintiff admits, compliance with Sections 361-363, 62 0.S.1951, was mandatory. Oklahoma City v. Green Construction Co., 184 Okl. 98, 84 P.2d 623; Mid-Continent Pipe Line Co. v. Seminole County Excise Board, 194 Ok. 40, 146 P.2d 996. The purpose of these sections of our statutes was to ensure compliance with our constitutional provisions concerning public expenditures, See. 26, Art. 10, and we may not ignore this plain expression of legislative intent.' A' judgment entered contrary to the provisions of Sec. 362, 62 O.S. 1951, "shall be void and of no effect." See. 363, 62 O.S.1951.. For this reason, which is: apparent on the face of this record, the trial court was correct in its conclusion concerning the validity of plaintiff's claim, Sec. 479, 62 0.$.1951, and properly granted defendant a new trial.
Where the reason assigned for granting a new trial requires, this court will examine the record, Benedict Bros. Const. Co. v. Davoult, Okl., 266 P.2d 960, but where the record fails to disclose an abuse of discretion, arbitrary action or error with respect to some simple and unmixed question of law, this court will not disturb an order which grants a new trial, Stillwell v. Johnson, Ok., 272 P.2d 365. Our examination of the record in this case fails to disclose either of those factors.
Affirmed.
Concurring Opinion
concurs in results.
The Court acknowledges the aid of the Supreme Court Commission in the preparation of this opinion. After a tentative opinion was written by the Commission the cause was assigned to a Justice of this Court. Thereafter, upon report and consideration in conference, the foregoing opinion was adopted by the Court.
Reference
- Full Case Name
- JACOBSON'S LIFETIME BUILDINGS, Inc., a Corporation, Et Al., Plaintiffs in Error, v. CITY OF TULSA, a Municipal Corporation, Defendant in Error
- Cited By
- 7 cases
- Status
- Published