McGonigale v. City of Defiance

Citations

• 140 F. 621
• 15 Ohio F. Dec. 100
• 1905 U.S. App. LEXIS 4817

Syllabus

<p>1. Municipal Corporations — Validity op Contracts — Statutory Limitation.</p> <p>A contract between a city and. a water company for tbe furnishing by tbe latter to the city of water and fire hydrants, for which the' city agreed to pay an annual rental in semiannual installments, when made in good faith and carried out by the company by furnishing the water and hydrants, is valid and binding upon the city, at least so long as it has taken no action to rescind the same, notwithstanding it was to remain in force by its terms for 30 years, while the power of the city was limited by statute to the making of contracts for not exceeding 20 years.</p> <p>2. Courts — Federal Courts Following State Decisions.</p> <p>A decision of the Supreme Court of Ohio in a suit brought under Rev. St. Ohio 1906, §' 1777, by a city solicitor to enjoin the performance of a contract made by the city with a water company and the payment of any . money thereunder on the ground of its invalidity, in which the court denied the relief prayed for on the ground that the suit was barred by limitation, and that the city, by reason of its accepting performance and itself performing the contract for a number of years, was without equity to question its validity, even though not technically operating to render the question of the validity of the contract res judicata, will be given such effect and followed by a federal court in a subsequent action by the water company against the city on the contract, in which the invalidity of the contract is set up as a defense.</p> <p>[Ed. Note. — State laws as rules of decision in federal courts, see notes to Wilson v. Perrin, 11 O. O. A. 71; Hill v. Hite, 29 O. C. A. 553.]</p> <p>3. Municipal Corporations — Action by Water Company on Contract — Defenses.</p> <p>In an action by a water company against a city to recover hydrant rentals, under a contract which contained certain conditions which the company was required to comply with relating to the quality of water