Majority
Headnote
Municipal Corporations—Contracts—Street Improvements—Rescission— Board or Contract and Apportionment—Certiorari.Under the charter of the city of Albany as it was in 1899 (chapter 298 of Laws of 1883, and the amendments thereto) the board of contract and apportionment consisted of the mayor, the chamberlain, the street commissioner, the city engineer and surveyor, and the president of the common council. It had charge, under the direction of the common council (title 9 of charter), of improvements such as the one covered by the contract-in controversy. It issued all proposals, received all bids, and awarded all contracts for such work. On May 1, 1899, the common council passed an act for the improvement of Morton street, and on May 11, 1899, specifications for the work were filed in the office of the city engineer. The relator was the lowest bidder, and the contract was awarded to him. The contract is in the name of the city of Albany, acting by and through its board of contract and ‘ apportionment, party of the first part, and was signed by the mayor pursuant to the direction of the board. The contract, among other things, provided that the board has the power in its discretion to vacate the contract for a neglect or refusal to proceed with the work, or for a violation of any or either of its covenants, terms, conditions, and provisions, without rendering the city liable for any damages therefor. By section “W” of the contract, the contractor agreed that all laborers employed in the performance of the contract should receive for a legal day’s work not less than the prevailing rate of wages in the trade or calling in which such laborers are employed in the locality; that eight hours should constitute a
By section 4 of the labor law, as amended by chapter 567 of the Laws of 1899, it was provided that any citizen of the state might maintain an action for the purpose of securing the cancellation or avoidance of any contract which, by its terms or manner of performance, violated the act. Clearly, the proceeding in question before the board was not an action within the contemplation of that statute. It was not claimed to be such at the hearing, but the contrary was stated by the corporation counsel, speaking, evidently, for the board. The board was the agent of the city in making the contract and in seeing that it was performed according to its terms. Complaints were made in behalf of the laborers that the contractor was violating the contract. These complaints the board investigated. In case there was a violation of the contract by the contractor, the board, as representing or being the party of the first part to the contract, had the right, under the contract, to terminate it. The determination by one party to a contract of the existence of facts which give him a right to cancel it does not conclude the other party as to the existence of such facts. That would allow a party to decide his own case, and would not be permissible unless the opposite party consented to such determination, or the contract was made in view of some statutory provision that expressly allowed it. We find nothing in the contract or the charter that allows the board to determine the questions here in controversy, and bind the relator by such determination. The query, then, is whether the action of the board is reviewable by certiorari. Does it interfere with any cause of action the relator may have against the city on the contract, based upon the theory that he has not violated it, and that the city canceled it without right, and to his damage? He had a right to have the question of violation tried in a constitutional way, and this he did not waive by his participation in the proceeding before the board. Prom the start he claimed that the board had no right to decide the question. A question somewhat similar was presented in Reilly v. Cfity of Albany, 40 Hun, 405 , arising under the same charter. It was there held that a determination made by the board of contract and apportionment that a paving contract had not been performed by the contractor did not bind the contractor, and was not a bar to an action brought by him against the city for damages for nonperformance by the city, though such determination by the board was made upon notice to the contractor and to the property owners liable to be assessed for the expense of the work, and after a hearing of both parties, at which evidence was given upon both sides. It was likened to the case of one sitting in judgment in his own suit. As to the same proceeding it was said in the same case in the court of appeals ( 112 N. Y. 30 , 45, 19 N. E. 508 ) that the action of the board in determining that the contractor had not performed, in no way affected the legal rights of the contractor. The board, in its supervision of the contract and of its performance, had a right to ascertain to its satisfaction whether the contract had been" violated. Assuming the violation to exist, it had a right to cancel. It could not, however, by'its own action,
Writ of certiorari quashed, without costs, upon the ground that the action of the board complained of is not reviewable by certiorari. All concur.
Cases cited
- Reilly v. City of Albany 112 N. Y. 30 at 45, 19 p. 453
- People ex rel. Trustees of Jamaica v. Board of Supervisors 131 N. Y. 468 p. 454