Opinion
No. 5064.
April 29, 1929.
APPEAL from the District Court of the Sixth Judicial District, for Bingham County. Hon. Ralph W. Adair, Judge.
Action to recover money alleged to be due for sale of bonds. Judgment dismissing complaint. Affirmed.
Holden Coffin, for Appellant.
A municipal corporation, even though limited as to the price at which it can sell its negotiable securities, has the same authority to employ a broker to act for it in the sale of its securities and to obtain a purchaser for its securities, as any other person has. ( Armstrong v. Village of Fort Edward, 159 N.Y. 315, 53 N.E. 1116.)
L. Ivan Jensen, Otto E. McCutcheon, John W. Jones and Guy Stevens, for Respondent.
"There was no authority in law for paying a commission for the sale of these bonds. C. S., sec. 4143, expressly prohibits such a municipal corporation from selling its bonds for less than their par value, net, and also prohibits the issuance of bonds in excess of the contract price and expense of such work." ( Lucas v. City of Nampa, 41 Idaho 35, 238 P. 288.)
Action by appellant to recover for services alleged to have been rendered as broker in the sale of certain bonds issued by respondent. Demurrer to the complaint was sustained and the action dismissed for failure of appellant to plead further. It is contended here that the trial court erred in sustaining the demurrer and in entering judgment of dismissal based upon the proposition that appellant's complaint did not state a cause of action.
We are of the opinion that respondent was not authorized to employ an agent for the purposes set out by appellant or to pay a commission for the sale of its bonds. ( Lucas v. City of Nampa, 41 Idaho 35, 238 P. 288; Smith v. Los Angeles County, 99 Cal. 628, 34 P. 439; Theis v. Board of County Commrs., 22 Okl. 333, 97 P. 973.) The court did not err in sustaining the demurrer to the complaint.
Judgment affirmed. Costs to respondent.
Givens, Wm. E. Lee and Varian, JJ., and Baker, D.J., concur.