Schenck v. Burgess
Schenck v. Burgess
Opinion of the Court
Opinion by
No attempt was made to sustain the allegations of fraud in
The ordinances which provided for the construction of the different parts of the works were all duly passed by the borough council, approved by the burgess, recorded in the ordinance book and advertised; but the plans and specifications referred to in the ordinances as “ attached hereto ” were not recorded or advertised. The ordinances provided for advertisements for sealed proposals, but they made no provision for the awarding of contracts. The bids were accepted and the contracts awarded by resolutions duly passed, approved by the burgess and entered upon the minutes, but not recorded in the ordinance book and not advertised. The objections to the validity of the contracts were based upon the ground that neither the plans and specifications attached to the ordinances nor the resolutions awarding the contracts were recorded in the ordinance book or advertised.' The learned judge found that the ordinances had not gone into effect for the reasons that the specifications had not been recorded and advertised, and that the resolutions .awarding the contracts, being legislative in their character-and not recorded and advertised, conferred no authority for making the contracts.
Neither the general borough Act of April 3, 1851, P. L. 322, under which the borough of Olyphant was incorporated, nor the Act of May 23, 1893, P. L. 113, requires anything but an “ enactment, regulation, ordinance or other general law ” to be recorded and advertised. The plans and specifications, although referred to in the ordinances, were not in terms made a part of them. The specifications at the time of the hearing were fully recorded, and an offer to show that the plans were of such á character that it was impossible to record or advertise them was overruled. Unless' for the purpose of notice to the public of the action of council the plans and specifications must be considered as essential parts of the ordinances, they do not come' within the requirements of either act. In some cases they may be so considered, but in this we think not. -If they had been referred to as on file in the office of the clerk, burgess or engineer of the borough, it could scarcely be contended that the acts applied to them. The publication of the minute details of con
The word “ ordinances ” as used in either act includes a resolution providing for the construction of public works. “An ordinance is defined to be the enactment of a permanent rule of conduct or government, while a resolution is an order of council of a special or temporary character. This distinction, however, is not adhered to. A permanent regulation in a municipal government may be adopted by what is designated as a resolution, and if so intended will have the same force and effect as an ordinance if passed with the same formalities. What the borough cannot do by the latter it cannot do by the former.” Triekett’s Pennsylvania Borough Law, sec. 106. A resolution of council is but another name for an ordinance, and if it be a legislative act it is immaterial whether it be called a resolution or an ordinance: Sower v. Philadelphia, 35 Pa. 231; Kepner v. Commonwealth, 40 Pa. 130; Waln v. Philadelphia, 99 Pa. 330. A resolution renewing a loan was held in Kepner v. Commonwealth, supra, to require the approval of the mayor; and in Marshall v. Mayor of Allegheny, 59 Pa. 455, a resolution not published and recorded was held ineffectual to revoke
But a direction that enactments, regulations, ordinances and other general laws shall be recorded and advertised does not apply to all acts of council. It does not include resolutions which are not in their nature legislative and which do not'take the place of ordinances. The learned judge says in his opinion: “ I find nothing in the law requiring resolutions accepting bids and awarding contracts to be recorded in the ordinance book and advertised, providing the authority to accept bids and award contracts has been properly conferred.” But he finds the resolutions invalid, for failure to record and advertise, because they were the only action of council conferring the authority, and were therefore legislative enactments. The prior ordinances providing for the erection of the works were three in number»By them it was “ enacted and ordained ” that buildings should be constructed, that an electric light plant should be purchased, that a steam plant to supply power for the manufacture of electricity should be purchased; and the secretary of the borough was directed to advertise for sealed proposals, and the burgess was directed to appoint, suitable persons to superintend the construction of the building and to inspect the machinery, etc. These were legislative acts providing for the construction of public works, and were the creation of the authority for that purpose. If the ordinances had authorized the burgess or some other officer or a committee of council to open the bids and award the contracts, nothing would have remained to have been done by council. The ordinances fixed in detail the terms of the contracts to be entered into, the kind and character of the work to be done, the time of completion, the penalty for non-fulfillment, and in fact everything except the price to be paid. What was left to be done was an executive or ministerial act, not a legislative one, and it was done by the whole body. It was to receive the bids and award the contracts — acts which could have been done by anyone to whom authority had been given by.ordinance. What necessity can there be.that council
The only remaining objection to the contracts is based upon the ground that the increase of the debt was illegal. This'objection was not raised by the original bill, and we are of the opinion that the amendment was improperly allowed. The purpose of the bill was to have certain contracts for the erection of electric light works declared void. The bill called into question the good faith of council in awarding the contracts, and the regularity and legality of the ordinances upon which the contracts were based, but it did not question the right of the borough to issue bonds. The purpose of the amendment was to have the increase of the borough debt declared illegal, and thus to strike down the security of the bondholders. The application for leave to amend was made more than a year after the bill was filed. In the meantime an answer and a replication had been filed, the testimony had all been offered, the argument made, and the case had been fully heard and was awaiting decision. No opportunity was ever given to the borough or the bondholders to be heard on the allegations in the amendment.
The application for leave to amend was not made in accordance with the equity rules ; it was too late, and it introduced a new and independent cause of action. No affidavit was filed that the application was not made for the purpose of vexation or delay, or that the matter of the amendment could not with reasonable diligence have been sooner introduced into the bill, as required by Rule 10. The introduction of the amendment shifted the ground of action by introducing an entirety new question, the means by which the money was raised. The bill was to declare the contracts void because of alleged defects in the ordinances intended to authorize them. If the plaintiffs were .entitled to the relief sought, they could have obtained it under the original bill. The subject-matter of the amendment was not an integral part of the subject-matter of the bill. The validity of the contracts did not necessarily depend upon the validity of the bonds. Their invalidity was alleged upon
The right of the plaintiffs, who as members of council participated in all the proceedings and by their votes approved all that was done, or of any one under the circumstances disclosed by the testimony, to object now to the validity of the bonds may well be doubted.
The decree is reversed and set aside. As there was ground for the objections to the contracts when the bill was filed, which were removed by the subsequent action of council in passing the ordinances and entering into new contracts, the costs should be divided equally between the plaintiffs and the borough of Olyphant. And it is so ordered.
Reference
- Full Case Name
- J. H. Schenck, Dominick Howard and R. J. Gallagher v. The Burgess, Town Council, Borough of Olyphant and Fanny M. Massey
- Cited By
- 27 cases
- Status
- Published
- Syllabus
- Boroughs — Municipal contracts — Advertisement—Acts of April 3, 1851 and May 23, 1893. Under the Acts of April 3, 1851, P. L. 322, and May 23, 1893, P. L. 113, the plans and specifications of a borough contract, if not essential parts oí the ordinance authorizing the contract, need not be advertised. The publication of the minute details of construction contained in specifications would impose an unreasonable burden on boroughs and would serve no useful purpose; the publication of plans and models would often be utterly impracticable. Such plans and specifications should be carefully preserved in the proper office and open to the inspection of all persons concerned. Per Fell, J. Municipalities — Boroughs— Ordinances — Resolutions. A permanent regulation in a municipal government may be adopted by what is designated as a resolution, and if so intended, and passed with the same formalities, will have the same force and effect as an ordinance. A resolution of council is but another name for an ordinance, and if it be a legislative act it is immaterial whether it be called a resolution or an ordinance. While legislation by borough councils may be by ordinance or resolution, the requirements which are essential to the validity of an ordinance must be observed in the passage, approval, recording and' publication of a resolution where the action of councils is legislative. A direction that enactments, regulations, ordinances and other general laws shall be recorded and advertised does not include resolutions which are not in their nature legislative, and which do not take the place of ordinances. Ordinances o£ a borough authorized the construction of electric light works. They fixed in detail the terms of the contracts to be entered into, the kind and character of the work to be done, the time of completion and the penalty for nonfulfilment. The ordinances were duly recorded and advertised. Bids were subsequently accepted and the contracts were awarded by resolution of councils, but the resolution was not recorded m the ordinance book, and not advertised. Held, that the resolution was merely a ministerial act and not a legislative one, and its advertisement was not necessary. Equity — Equity practice — Amendment—Boroughs—Municipal indebtedness. A bill in equity was filed to have certain contracts of a borough for the erection of an electric light plant declared void. The bill raised the question of the good faith of council in awarding the contracts and the regularity and legality of the ordinances upon which the contracts were based, but it did not question the right of the borough to issue bonds. An answer was filed denying every allegation of fraud and irregularity. A replication was filed to the answer, testimony was taken, arguments made, and the case was awaiting decision, when the court, more than a year after the bill was filed, allowed it to be amended, so as to raise the question as to the legality of the increase of the borough debt. No opportunity was given to the borough or the bondholders to be heard on the allegations in the amendment. At the time the amendment was allowed no affidavit was filed that the application was not made for the purpose of vexation or delay, or that the matter of the amendment could not with reasonable diligence have been sooner introduced into the bill as required by Equity Rule, 10. Held, (1) that the amendment shifted the ground of action by introducing an entirely new question which was not an integral part of the subject-matter of the bill; (2) that it was error to allow the amendment.