Hotchkiss v. Moran

MR. JUSTICE THOMPSON (R. L.) Delivered the Opinion of the Court.

This is an appeal from a judgment awarding a writ of mandate to compel the appellant, as treasurer of Crescent City, to cash certain warrants issued to the respondent, a public service corporation, in payment of the purchase price of electric energy for lighting the city.

This is a companion case to that of

Hobbs, Wall & Co.

v.

Moran, ante,

p. 316 [293 Pac. 145], in which an opinion of this court was this day filed. The essential facts of the two cases differ materially.

The respondent is a public service corporation, engaged in the enterprise of manufacturing and marketing hydroelectric energy for lighting purposes in and about Crescent City. Hotchkiss, the president of this electric lighting corporation, was also a stockholder in a mercantile corporation doing business in the same community under the name of Hobbs, Wall & Company. Leo A. Dressier was the business manager of this mercantile establishment, working for it on a salary. He was not otherwise interested in the mercantile company. He was not a stockholder or' employee of the electric lighting company, He was, at the

same time,

a member of the city council and chairman of the finance

[323]

committee of Crescent City. The petitioner, electric lighting company, sold and furnished Crescent City with electric energy for lighting the city and its public buildings. Claims amounting to the sum of $305.82 were presented to the city for this service and allowed with the approval of Councilman Dressier. Warrants were drawn therefor and presented for payment to the appellant as treasurer of the city. Payment of these warrants was refused on the ground that the contract for lighting the city was illegal and void under the provisions of section 886 of the Municipal Corporation Act of California (Deering’s Gen. Laws 1923, Act 5233, p. 2247), for the reason that one of the councilmen of Crescent City was interested in the company which supplied the electric light to the city. This suit was thereupon instituted. The trial court ordered a writ of mandate to issue directing the treasurer to - pay the warrants. Prom this judgment the treasurer has appealed.