McCormick v. Hanover Township
McCormick v. Hanover Township
Opinion of the Court
Opinion by
The board of supervisors of Hanover Township, a township of second class of Luzerne County, by written contract dated 15th December, 1910, engaged the plaintiff and another as counsel for the next ensuing fiscal year beginning with the first Monday in March, 1911, at a salary of $2,500.00 for each. The appellant not having been paid any part of the salary stipulated for in the contract, brought the present action to recover. The township defended on the ground that the contract on part of the supervisors was ultra vires; and on the further ground that it had been abrogated by a subsequent contract entered into between the same supervisors and a tax payer for the repair of the roads during the fiscal year, pursuant to the provisions of the Act of 12th June, 1893. The trial resulted in a verdict for the plaintiff for the full amount of the claim, which on motion was set aside, and judgment non obstante was thereupon entered for the defendant. In his opinion filed, the learned trial judge sustained the second objection urged by defendant, and held that the later contract for the repair and maintenance of the public roads with a tax payer abrogated the earlier one with the plaintiff, inasmuch as by the later contract, under the
“Thus, when a contract involves and relates to governmental or legislative functions of the board making it, or involves a matter of discretion to be exercised by the board, unless the statute conferring power to contract clearly authorizes a board to make a contract extending beyond its own term, no power of the board so to do exists, since the power conferred upon boards to exercise legislative or governmental functions is conferred to be exercised as often as may be found needful or politic, and the board presently holding such powers is vested with no discretion to circumscribe or limit or diminish their efficiency, but must transmit them unimpaired to their successors.”
The contention on part of appellant is that though this rule be conceded, it is without application here,
The invalidity of the contract for the second reason above indicated is quite as apparent. The circumstances existing at the time the contract was entered into here call for remark. We have adverted to the fact that it was executed three months in advance of the period when any service would be required of the plaintiff. Another fact, not without significance, is that it was executed at a time when plaintiff stood in relation of counsel to the board under a then existing and uncompleted contract. So far as appears there was nothing in the situation calling for haste or expedition in the selection of counsel. Nor was there in anticipation anything that would require of counsel employed exceptional service. So far as could be foreseen nothing out of the ordinary and usual business would call for counsel’s assistance
“We rest our decision upon the broad ground that the commissioners had no power to bind the county by such a contract; that it was against public policy, and therefore null and void.......These commissioners were acting in a fiduciary capacity. They were but trustees of the money, when received, for the use of the county. When, therefore, they contracted to give one-half of it to the plaintiffs for their services, they exceeded their power. They were giving away what did not belong to them. As well might a trustee contract to give away one-half of the trust estate as a compensation to counsel for services in connection therewith, and if he give him one-half, why not, three-fourths, or even a greater proportion? Can it be doubted that a court of equity would strike down such a contract as improvident and a legal fraud?”
We have adverted to the fact that, notwithstanding the circumstances referred to, plaintiff and his associates did under the terms of their employment render profes
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- Muncipalities — Townships—Contracts—Powers of supervisors— Governmental powers — Business powers — Bight to employ counsel —Duration of contract for legal services — Act of March 21, 1911, P. L. 8 — Improvident contracts — Ultra vires act of supervisors— Judgment for defendant n. o. v. 1. Municipalities, no matter how high their grade, can exercise no powers save those for which there is express statutory authority or such as are necessary to the exercise of their corporate powers and which are therefore implied. 2. There is a clear distinction between the governmental and business or proprietary powers of municipalities. With respect, to the former, their exercise is so limited that no action taken by the governing board is binding upon its successor, whereas the latter are not subject to such limitations and may be exercised in a way that will be binding upon the municipality after the members of the contracting board have gone out of office. 3. From the fact that townships may sue and be sued, power to employ counsel is implied, and this power they may exercise as occasion arises or they may engage counsel for a term as the judgment of the supervisors may determine, but in engaging counsel, supervisors are acting as the agents of the township and are exercising the governmental as distinguished from the proprietary or business function of the municipality. 4. A contract between the supervisors of a township and an attorney for legal services to be rendered by the attorney for a term to begin after the commencement of a new fiscal year, when a board otherwise constituted would be in office, is beyond the power of the contracting board and is invalid. The fact that under the Act of March 21, 1911, P. L. 8, one member who ordinarily would have retired at the expiration of such year was empowered to act for another year, does not prevent the application of the rule. 5. A contract between a township and an attorney for the rendition of legal professional services by the latter which is so extravagantly improvident under the circumstance that it is to be condemned as an unwarranted exercise of power, is unenforceable. 6. In an action to recover salary alleged to be due under a written contract entered into by plaintiff with the supervisors of a township, dated December 15,1910, whereby the township engaged plaintiff and another attorney to act as counsel for the next ensuing fiscal year, beginning in March, at a salary of $2,500 each, it appeared that the constitution of the board of supervisors would have been changed in March, 1911, by the expiration of the term of service of one supervisor, to whose place a newly elected supervisor would have succeeded had it not been for the extension of his term by the Act of March 2, 1911, P. L. 8; that at the time when the contract was made, the attorney stood in the relation of counsel to the board under a then existing and uncompleted contract; that there was nothing in the situation calling for haste in the selection of counsel and it did not appear that anything was anticipated which would require of counsel service commensurate with the s.alary paid. The jury found a verdict for plaintiff for the amount of his claim. Held, the court did not err in entering judgment for defendant n. o. v.