Court Opinion

ID: 9765953
Source: CourtListenerOpinion
Date Created: 2023-08-29 04:26:26.169872+00
Date Added: 2024-06-11T13:09:02.093875
License: Public Domain

COLEMAN, Justice
(concurring).
I concur in the opinion of the majority except on the question hereinafter discussed. Article 5160, subd. A, V.A.C.S., provides in part: “Any person or persons * * * entering into a formal contract in excess of Two Thousand Dollars ($2,000) with * * * any county of this State * * * shall be required before commencing such work to execute to the aforementioned governmental authority * * * the statutory bonds as hereinafter prescribed.”
Article 2368a, Sec. 2, V.A.C.S., prohibits a county from making any contract requiring the payment of $2,000.00 or more out of county funds without first submitting the proposed contract to competitive bids in the manner set out in the article. The article further provides that “if the contract is for the construction of public works, then the successful bidder shall be required to give a good and sufficient bond in the full amount of the contract price, for the faithful performance of such contract, executed by some surety company authorized to do business in this State in accordance with the provisions of Article 5160, Revised Statutes of 1925, and amendments thereto.” The final paragraph of this article provides:
“Any and all such contracts or agreements hereafter made by any county or city in this State, without complying with the terms of this section, shall be void and shall not be enforceable in any Court of this State, and the performance of same and the payment of any money thereunder may be enjoined by any property taxpaying citizen of such county or city.”
It is my opinion that the performance bond required by Art. 2368a, Sec. 2, V.A. C.S., must conform to the requirements of Art. 5160, V.A.C.S., as to content and form. I do not think that by referring to Art. 5160 it was intended that all of the provisions of that article referring to bonds were incorporated in Art. 2368a. Art. 5160 does not provide that a failure to post the bonds required prior to beginning work would render the contract void, nor does it specifically authorize a taxpaying citizen to bring suit to enjoin performance of work under the contract. Art. 2368a does not require that the performance bond be posted prior to beginning work, and does not require that a payment bond be posted.
While the County and the contractor must comply with all of the provisions of both articles, the failure of the contractor to post his performance bond prior to begin*416ning'work did-not violate Art. 2368a, which contained the provision authorizing the injunction by a taxpayer. This failure did violate Art. 5160, but that article contains no provision authorizing a taxpayer’s suit and declaring the contract void and unenforceable.
The County did not terminate the contract after the work had begun because of the contractor’s failure to post the required bonds, and, at the time judgment herein was rendered, had approved and accepted the bonds tendered in fulfillment of the obligation of the contractor.
In Osborne v. Keith, Tex.Com.App., 142 Tex. 262, 177 S.W.2d 198, opinion adopted, the court said:
“This court recognizes the right of a taxpaying citizen to maintain an action .in a court of equity to enjoin public officials from- expending public funds under a contract .that is void or illegal. Looscan v. County of Harris, 58 Tex. 511; City of Austin v. McCall, 95 Tex. 565, 68 S.W. 791; Terrell v. Middleton, Tex.Civ.App., 187 S.W. 367, error refused, 108 Tex. 14, 191 S.W. 1138, 193 S.W. 139 Hoffman v. Davis, 128 Tex. 503, 100 S.W.2d 94. The vigilance of a citizen who takes upon himself that burden in the interest of good government is to be 'commended. However, the procedure is generally recognized as being drastic and, in order to’be authorized to maintain such an action, a citizen must bring himself strictly within the established rules. Governments cannot operate if every citizen who concludes that a public official has abused his discretion is granted the right to come into court and bring such official’s public acts under judicial review. The right, therefore, of a citizen to maintain such an action is strictly limited to cases of illegality of the proposed expenditure and does not extend to cases of unwise or indiscreet expenditures. The contract upon which it is proposed to pay out public funds must be illegal and not merely voidable at the option of the public official entrusted with authority in the premises. Spears v. City of South Houston, 136 Tex. 218, 150 S.W.2d 74; Bexar County v. Hatley, 136 Tex. 354, 150 S.W. 2d 980; Mayer v. Kostes, Tex.Civ.App., 71 S.W.2d 398, writ refused; Glimpse v. Bexar County, Tex.Civ.App., 160 S.W.2d 996, writ refused.”
In Globe Indemnity Co. v. Barnes, Com.App., 288 S.W. 121, the court said:
“The purpose of the statute under consideration was to protect persons furnishing material or labor in the construction of public works against which there could exist no lien for their protection. The method pursued was intended to effect this protection through a bond required to be executed by the contractor. The execution of the bond .conditioned as required by the statute is made a condition precedent to the right to commence such work. Such a contract can only be carried out lawfully after the execution of the bond as re-.. quired by. statute. The effect of the : statute is to Redare the liability of one executing the bond for such a contractor.”
Art. 5160 contemplates that the bonds shall be posted after the contract has been signed, but before work has' begun. The contract has not been shown to be illegal. Beginning work prior to the posting of the bonds was illegal, and could have been prevented by the County. It is unnecessary to determine whether or not the plaintiff, as a taxpaying citizen, had a sufficient interest to maintain this suit since the bonds were posted prior to the trial on the merits, and prior to the rendition of judgment at the preliminary hearing. The completion of the work after the required bonds were posted ■was not illegal.