Majority
Headnote
[1] Contracts—Influencing Legislation—Validity of Contract.—■ The employment of persons to influence legislation or to influence decisions of the Land Department, or even the decisions of judicial tribunals, in a proper way, is not against sound public policy, and a contract having such purpose is valid.Imperial Irrigation District, one of the defendants herein, is an irrigation district organized and existing under and by virtue of the California Irrigation District Act, approved March 31, 1897 (Stats. 1897, p. 254), and the acts amendatory thereof and supplementary thereto. The plaintiff is an elector and taxpayer of said district and the defendants, Mark Rose, Earl C. Pound, Ira Aten, C. W. Brockman, and W„ 0. Blair, constitute the board of directors of said district, and the defendant, F. H. McIver, is the duly appointed, qualified, and acting treasurer of said district. On October 23, 1925, at a regular meeting of said board of directors, the following resolution was adopted by said board: “Resolved that Imperial Irrigation District employ B. F. Fly at a salary of $250.00 per month and one-half of his actual and necessary expenses to appear on behalf of this district before the various committees of Congress of the United States having under consideration the Swing-Johnson bill, to present facts and arguments in support of said bill, said employment to commence on the 1st day of December, 1925.” Thereafter the said B. F. Fly, referred to in said resolution, accepted said employment and agreed to perform the services required of him by said resolution in consideration of the payment to him of the salary and expenses provided for therein.
This action was instituted by plaintiff as an elector and taxpayer of said district to enjoin the defendant from auditing, allowing, or ordering paid any. claim or demand for salary or expenses of the said B. F. Fly for services rendered pursuant to the terms of said resolution. The trial court held that said employment was illegal and gave judgment in favor of plaintiff in accordance with the prayer of Ms complaint. From the judgment in favor of plain
Considering the first point made by the respondent against the validity of the contract employing Mr. Fly, it is evident from the terms of the resolution that the purpose of employing him was to secure favorable action on the part of the Congress of the United States in behalf of the Swing-Johnson Bill mentioned in said resolution and then pending before Congress. Appellants make no claim that this was not the object and purpose of the district in the employment of Mr. Fly. They do contend, however, that notwithstanding that this was the object and purpose of said contract, yet, as by the terms of the resolution, he is simply to appear before the committees of Congress having said bill under consideration and to present to said committees facts and arguments in support of said bill, such employment is perfectly proper, and is not against good morals or contrary to public policy. A contract somewhat similar to the one here involved was before the supreme court in the case of Foltz v. Cogswell, 86 Cal. 542 [ 25 Pac. 60 ], In that action the plaintiff sought to recover for services rendered by her in the preparation of a certain bill to be presented to the legislature of the state of California “and in making arguments before the various committees of that body, in order that the justice and merits of defendant’s demand for the passage of the bill might be fully understood.” This court, after quoting from the case of Miles v. Thorne, 38 Cal. 335 [ 99 Am. Dec. 384 ], used the following language: “In the latter case, the court draws a distinction between the use of personal, or any secret or sinister, influence upon legislators, by one who seeks the passage of an act which it holds to be contrary to public policy, and the open advocacy of the same before the legislature or any committee thereof
The only California case relied upon by respondent as laying down a different doctrine than that enunciated in the foregoing authorities is the case of County of Colusa v. Welch, 122 Cal. 428 [ 55 Pac. 243 ]. This case was one brought through the district attorney of Colusa county to restrain the county treasurer of said county from paying the sum of $1,000 upon a warrant issued by the county auditor in favor of one B. S. Sprague. The county of Colusa was interested in the defeat of a certain bill pending before the state legislature, and so it was alleged in the complaint in said action, “That if the sum of one thousand dollars,, ' was agreed to be paid to said Sprague, it was to secure, by means of personal solicitation, and by means of private interview with members of the legislature of California, and by means of lobbying, the defeat of said senate bill.’ ” A general demurrer to the complaint was sustained by the trial court. The supreme court reversed the judgment and held that the complaint stated a good cause of action. The decision of the court upon this phase of the case was predicated upon those allegations of the complaint wherein it was alleged that Sprague "was employed to secure the defeat of the bill by means of lobbying as well as by other means. Lobbying has a definite meaning in this state and it is made a crime both by the constitution and statutes of this state (art. IV, see. 35; Pen. Code, sec. 89). The court in this case cites with approval the following statement from Cooley on Constitutional Limitations: “The law also seeks to cast its protection around legislative sessions, and to shield them against corrupt and improper influences, by making void all contracts which have for their object to influence legislation in any other manner than by such open and public presentation of facts, arguments, and appeals to reason as are recog
[2] Turning now to the resolution of the Irrigation District employing Mr. Fly, we find nothing therein which in any way contemplates the use by Mr. Fly of any improper or illegal means to secure the passage of the legislation desired by the district. The resolution plainly states that Mr. Fly is employed to appear on behalf of the district before the various committees of Congress of the United States having under consideration the Swing-Johnson Bill and to present facts and arguments in support of said bill. His services are limited by the terms of the resolution to appearances before the various congressional committees having the bill under consideration and to the presentation before said committees of facts and arguments in support of said bill. “It is the universal presumption of law that where a con-
[3] The other question presented upon this appeal involves the power and authority of the Imperial Irrigation District to enter into the contract employing Mr. Fly and to pay for his services from the funds of such district, even if such contract is not against public policy. The position taken by respondent is that as the purpose of such contract is to employ Mr. Fly to influence legislation, the district has no power to use the funds of said district for such purpose. [4] Respondent contends that an irrigation district is a municipal corporation and that the rule is well established that a municipal corporation has no authority to make an expenditure of public funds for the purpose of influencing legislation. While there is language to be found in some of the decisions of this state which might be taken as holding that an irrigation district is a municipal corporation (People v. Cardiff Irr. Dist., 51 Cal. App. 307 , 312 [ 197 Pac. 384 ]), we think that the great weight of authority is to the effect that an irrigation district is not strictly a municipal corporation (Huck v. Rathjen, 66 Cal. App. 84 [ 225 Pac. 33 ]; Whiteman v. Anderson-Cotton-Wood Irr. Dist., 60 Cal. App. 234 , 243 [ 212 Pac. 706 ] ; Turlock Irr. Dist. v. White, 186 Cal. 183 [ 17 A. L. R. 72 , 198 Pac. 1060 ]). In
[5] An irrigation district, like any other public or private corporation, derives its powers from the statute under which it is created and acts, and from such other statutes as may have been enacted by the legislature granting it additional powers or limiting those already granted. These powers are as different from those exercised by a strictly municipal corporation as the purposes of an irrigation district differ from those of a city or county or other strictly municipal corporation. We must, therefore, consult the statutes of the state in the first instance, at least, to determine the extent of the powers which may be legally exercised by an irrigation district. The extent of these powers is found in the main in those sections of the statutes defining the powers of boards of directors of such districts. The principal provisions of the statutes affecting the powers of boards of directors are contained in the following sections of the statutes of our state:
“The board of directors shall have the power and it shall be their duty to manage and conduct the business and affairs of the district; make and execute all necessary contracts; employ and appoint such agents, officers, and employees as may be required, and prescribe their duties. . . . Said board shall also have the right to acquire, by purchase, lease, contract, condemnation, or other legal means, all lands, and waters, and water rights, and other property necessary for the construction, use, supply, maintenance, repair and improvements of said canal, or canals, and works, whether in this or in other states or in a foreign nation, including canals, and works constructed and being constructed by private owners, lands for reservoirs for the storage of needful waters, and all necessary appurtenances, and also where necessary or convenient to said ends to acquire and hold the stock of other corporations domestic or foreign owning waters, canals, waterworks, franchises, concessions or rights. Said board may enter into, and do any acts necessary or proper for the performance of, any agreements with the United States, or any state, county, district of any kind, public or private corporation, association, firm or individual, or any number of them, for the joint acquisition, construction, leasing, ownership, disposition, use, management, maintenance, repair or operation of any rights, works or other property of a kind which might lawfully be acquired or owned by the irrigation district, and may acquire the right to store water in any reservoirs or to carry water through any canal, ditch or conduit not owned or controlled by the district, ...”
Section 15b of said act further provides that: “The board of directors of any irrigation district may also construct the necessary dams, reservoirs, and works for the collection of water for said district, and do any and every lawful act necessary to be done, that sufficient water may be furnished to each land owner in said district for irrigation and domestic purposes; ...”
Section 15e provides, among other things, that: “Said board shall have power generally to perform all such acts
In addition to these sections of the Irrigation District Act, section 1 of the act of 1915 (Stats. 1915, p. 1) provides:
“The board of directors of irrigation districts having an area of more than five hundred thousand acres may expend such sums as may to them seem necessary for the protection of the canal system of such district or of lands within such districts from damage by flood and from the overflow of rivers and may contribute funds for that purpose to be expended by or jointly with the government of the United States of America, or other governments or persons benefited by the same protective work or works. The board of directors of any such irrigation district may also do all things necessary to insure such irrigation system and the lands within such district from any such damage by flood or overflow without first receiving a petition of land owners or freeholders for holding an election to authorize such expenditure.” This act has been held to be constitutional and applicable to the Imperial Irrigation District (Wares v. Imperial Irr. Dist, 193 Cal. 609 [ 227 Pac. 181 ]).
To briefly epitomize the terms of these sections of the statutes we find that the board of directors of an irrigation district is given power generally to manage the affairs of the district; to execute all necessary contracts; to employ and appoint all agents, officers, and employees and define their duties; to acquire water rights, canals, maintain waterworks, whether in this or any other states or in a foreign nation; to enter into any agreement with the United States or any state or other corporation, public or private or individual, for the joint acquisition, construction, maintenance, or operation of any rights or works that might be lawfully owned by an irrigation district; to do any and all lawful acts necessary to be done that sufficient water may be furnished to the inhabitants of the district for irrigation and domestic purposes and to perform all acts that shall be necessary to fully carry out the purposes of the act under which said district was formed. In addition to these powers conferred generally upon irrigation districts, the board of directors of the Imperial Irrigation District, under the act of 1915, may expend such funds of the district as they may deem necessary for the protection of the canal system and the lands of
the district from damage by flood or the overflow of rivers and may contribute funds to be expended for that purpose by or jointly with the government of the United States of America or other governments or persons benefited by such protection work. From these provisions of the statutes we are impressed with two outstanding features of this legislation. First, that the prime object and purpose of such an organization is to provide water for the use of its inhabitants and land owners for irrigation and domestic purposes, and, secondly, the broad and comprehensive nature of the powers conferred upon the board of directors in order to enable them to accomplish this purpose. We also might emphasize another feature which stands out prominently in this legislation and which, in our opinion, is important in the determination of the question now under consideration. This is the minute particularity and definiteness with which the legislature has given the board of directors power to contract with the United States government as well as with individuals and other public and private corporations for the purposes of acquiring water rights and constructing and operating waterworks and expressly authorizing the district to contribute funds of the district for the purpose of construction of works to be erected by the United States, or jointly by the United States and the district, for the purpose of protecting the canal system and lands of the district from river overflow. In order to perform these duties and execute the powers thus given to the board of directors of the Irrigation District, it is apparent that it may be necessary for the board to adopt some means of bringing to the attention of the United States government or other governments with which the district may wish to enter into contracts the subject matter of the proposed contracts. It also seems apparent to us that occasions may arise when it will be absolutely necessary in the best interests of the district that it be represented in person before the proper boards or instrumentalities of these governments in order that the claims of the district as to the matters before these boards may be understood by the officials charged with the consideration of such matters. In bringing about the execution of a contract with the United States government, such as securing rights of way over the public domain for a canal
system or the right to take water from a stream under government control and jurisdiction, it may be necessary for the applicant to be represented, either in person or by a duly appointed agent before the Department of the Interior or some board or committee having charge of such matters, and perhaps before Congress itself, when the matters require congressional action, in order to properly present the interest of said district. We think there is no question if the Imperial Irrigation District found it necessary to secure a right of way over the public domain for its canal system, and this right could only be had by the district mailing a proper showing before the Department of the Interior, that the board of directors would have the power to send a representative before such department for the purpose of properly presenting such matter before said department. And if the project, which the board of directors finds is necessary in order to carry out some of its prescribed duties, requires congressional action before the same may be performed by the district, then we can see little or no difference in sending a representative to present the facts bearing upon the subject of the proposed legislation before the proper committees having the same under consideration than in sending such a representative before the Department of the Interior to present a matter there pending in which the district is interested. To withhold such authority in either case would be to cripple unnecessarily the power of the district to accomplish the purposes of its formation, and might seriously hamper the district in its efforts to secure the very contracts which the statute expressly authorizes it to make and execute with the United States government.
The Swing-Johnson Bill authorizes the construction of a dam in the Colorado River at a point in or near Boulder Canyon and also the construction of a canal from the Laguna Dam in said river to the lands of the Imperial Irrigation District. The dam and canal are to be built according to the terms of said bill by the United States government and the former is to be paid for by revenues to be derived from the leasing of power privileges incident thereto and the latter by the lands to be benefited thereby. This ease was submitted in its entirety upon an agreed statement of facts. This statement recites at some length the problems of the Imperial Irrigation District and its efforts to secure an ade
quate water supply for the use of its inhabitants for irrigation and domestic purposes, and protection of the district from the flood waters of the Colorado River. It is not necessary to enter into the details of this lengthy statement of facts. A portion of paragraph XIV of the agreed statement reads as follows: “It is necessary that said Swing-Johnson Bill or similar legislation by the Congress of the United States, be enacted in order that water may be furnished to the land owners within the boundaries of Imperial Irrigation District for irrigation and domestic use and that it is necessary that said Swing-Johnson Bill or similar legislation be passed by the Congress of the United States to prevent the destruction of the properties of the said district and the inhabitants thereof from floods of the Colorado River; . . . that said Swing-Johnson Bill is designed primarily for the relief and benefit and protection of the Imperial Irrigation District.” From another portion of the agreed statement of facts it appears that the only source from which said district can secure an adequate or, for that matter, any supply of water is the Colorado River and, furthermore, due to the fact that said district is situated from one hundred to three hundred feet below the river-bed of said river, it is seriously menaced by having its lands overflowed and destroyed by the flood waters of said river. In fact, it is expressly stipulated as to the flood menace that “within a period of from ten to twenty years the basin where the river now flows will be entirely filled with silt and sediment and that in that event there will be no place for the river to flow except into the Imperial Valley and onto the lands within the Imperial Irrigation District, and that the river will so flow into said district and completely inundate and destroy the same and the property values therein and drive the inhabitants therefrom if adequate means are not promptly provided to thoroughly regulate the river, desilt the water, and control the floods by means of one or more great storage reservoirs in the upper reaches of the river.”
The district is not financially able to construct said dam and canal, and if it were able it has no authority from the United States or the states in which said dam would necessarily have to be located to build said dam. From these facts it appears that the only means whereby said district can hope to obtain a supply of water for irrigation and do
We do not think this conclusion is contrary to any of the authorities cited by the respondent and the amici curiae in this action. The cases mainly relied upon by them as announcing a different doctrine are County of Colusa v. Welch, 122 Cal. 428 [ 55 Pac. 243 ], Valentine v. Robertson, 300 Fed. 521 , and State ex rel. Rice v. Bell, 124 Wash. 647 [ 215 Pac. 326 ], In the first two of these three cases the right of a strictly municipal corporation to employ a representative to appear before a legislative body to influence legislation in which the municipality had only an indirect interest was involved. In each case it was decided that no such authority was given to the governing body of such municipality and that public funds could not be expended for such purpose. In the case of State ex rel. Rice v. Bell, supra, the supreme court of the state of Washington decided that an irrigation district known as the Quincy Valley Irrigation District, organized under the laws of that state, had no authority to pay the expenses of its engineer in attending the Western States Irrigation Congress, held at San Francisco, for the purpose of interesting said irrigation congress in a bill then pending before the Congress of the United States known as the Jones Bill, the passage of which it was thought would be of great benefit to said irrigation
Neither do we find anything in section 61 of the California Irrigation District Act of 1897 which would lead to a conclusion contrary to that which "we have expressed above. This section provides: “The board of directors or other officers of the district shall have no power to incur any debt or liability whatever, either by issuing bonds or otherwise, in excess of the express provisions of this act; and any debt or liability incurred in excess of the express provisions shall be and remain absolutely void; ...” We think that we have already shown that the employment of Mr. Fly was within the express provisions of the Irrigation Act. It is true that there are no express words to be found in the stat
[7] The judgment is reversed. As the case was submitted upon an agreed statement of facts without any other evidence whatever, findings of fact were unnecessary (24 Cal. Jur. 953). The only question, therefore, before the court was as to what was the law applicable to those facts (Gregory v. Gregory, 102 Cal. 50 [ 36 Pac. 364 ]; McMenomy v. White, 115 Cal. 339 [ 47 Pac. 109 ]). Any findings of fact made by the court under these circumstances may be disregarded. The trial court is therefore directed to enter a judgment in favor of the defendants, denying plaintiff the relief sought by the complaint herein.
Richards, J., Seawell, J., Preston, J., Langdon, J., and Waste, C. J., concurred.
Shenk, J., being disqualified, did not participate in the decision.
Cases cited
- Foltz v. Cogswell 86 Cal. 542 p. 321
- Miles v. Thorne 38 Cal. 335 p. 321
- Bergen v. Frisbie 125 Cal. 168 p. 322
- Schweppe v. Sandberg 50 Cal. App. 507 p. 322
- County of Colusa v. Welch 122 Cal. 428 p. 323, p. 332
- Fites v. Marsh 171 Cal. 487 p. 325
- People ex rel. Jones v. Cardiff Irrigation District 51 Cal. App. 307 at 312 p. 325
- Huck v. Rathjen 66 Cal. App. 84 p. 325
- Whiteman v. Anderson-Cottonwood Irrigation District 60 Cal. App. 234 at 243 p. 325
- Turlock Irrigation Dist. v. White 186 Cal. 183 p. 325
- Bettencourt v. Industrial Accident Commission 175 Cal. 559 p. 326
- Wores v. Imperial Irrigation District 193 Cal. 609 p. 328
- Harris v. Gibbins 114 Cal. 418 p. 334
- Lewis v. Colgan 115 Cal. 529 p. 334
- Gregory v. Gregory 102 Cal. 50 p. 335
- McMenomy v. White 115 Cal. 339 p. 335