McMullen v. Hoffman

Citations

• 174 U.S. 639
• 19 S. Ct. 839
• 43 L. Ed. 1117
• 1899 U.S. LEXIS 1525

Syllabus

<p>The city of Portland, in Oregon, proposing to receive bids for the construction of what was called the Bull Run pipe line, Hoffman of Portland and McMullen of San Francisco entered into a contract in writing as follows : “ This agreement, made and entered into by and between Lee Hollinan, of Portland, Oregon, doing business under the name of Hoffman & Bates, party of the first part, and John McMullen, of San Francisco, California, party of the second part, witnesseth: That, whereas, said Hoffman and Bates have with the assistance of said McMullen at a recent bidding on the work of manufacturing and laying steel pipe from Mount Tabor to the head works of the Bull Run water system for Portland, submitted the lowest bid for said work, and expect to enter into a contract with the water committee of the city of Portland for doing such work, the contract having been awarded to said Hoffman and Bates on said bid : It is now hereby agreed that said Hoffman and said McMullen shall and will share in said contract equally, each to furnish and pay one half of the expenses of executing the same, and each to receive one half of the profits or bear and pay one half of the losses which shall result therefrom. And it is further hereby agreed that if either of the parties hereto shall get a contract for doing or to do any other part of the work let or to be let by said committee for bringing Bull Run water to Portland, the profits and losses thereof shall in the same manner be shared and borne by said parties equally, share and share alike.” Both put in bids for the work which forms the subject of dispute in this case. Hoffman’s bid was for $465,722. McMullen’s was $514,664. There were several other bids, but Hoffman’s was the lowest of all. The contract was awarded to him. He did the work and received the pay. This action was brought by McMullen to recover his portion of the profit, according to the contract. Held, that this contract was illegal, not only as tending to lessen com