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5 !~ert"a stockholder", "presidenff', "partner", <br /> er other description of the nature of the per- <br /> sonal financial' interest of the official in the <br /> contract. If the official does business as an <br /> individual under his own name, clause no. 4 <br /> may be omitted. . <br /> <br />Comment <br /> <br />This affidavit must be filed with the city clerk <br />before payment of the claim is made. !t re. ay <br />be acknowledged by a notary public, the city <br />clerk, or any other officer qualified under the <br />law to administer oaths. <br /> <br />PART II. CONFLICT OF INTEREST IN NON-CONTRACT SITUATIONS <br /> <br />General Rule <br /> <br />What is a Disqualifying interest <br /> <br /> While the statuto~'y rules discussed thus far <br />relate only to contracts with interested officials, <br />courts throughout the country, including the <br />Minnesota Supreme Court, have foltowed a similar <br />principle in non-~ontract situations even in the <br />absence of statute. Any official who has a personal <br />pecuniary interest that may conflict with the pub- <br />:lc interest in considering an official action is <br />genel~tly disqualified from participating in he <br />~.c:ion. This is especially true where the question <br />to be voted on concerns the member's own char- <br />~..,:.~er or conduct or his right to hold office or <br />wh~re his own personal pecuniary interest is so <br />!mmediat~, particular, and distinct from the <br />public in~erest that he cannot be expected to <br />represent the public interest fairly in deciding <br />the matter at issue. (62 C.J.S., Municipal-Corpora- <br />riens, Sec.-402, p. 76~: 56 Am. Jut. 2d, Municipal <br />Corporations, Sec. 142.) ' <br /> <br /> ln'appiying the disqualification rules in non- <br />con:ract situations, the courts have sometimes <br />made a distinction between judicial and quasi- <br />judicial acts on the one hand and legislative and <br />administrative acts on the other, but this distinc- <br />tion has not been consistently applied in-particular <br />:ase.a. In general, when an act of a council is <br />]udicial, no member who has a personal financial <br />interest may take part, and some courts would <br />hold that his participation makes the decision <br />'voidable even if his vote was not necessary to <br />make up the majority necessary for decision. <br />See i33 A.L.R. 1257, 1260. Sum0 of the illustra- <br />tive cases included in the next section indicate how <br />this distinction has been applied in practice. <br /> <br /> When there is such a disqualifing personal <br />interest, the action is not necessarily void, however. <br />in .contrast to the rules regarding conflict of <br />interest as applied to contracts, the official action <br />may still be taken validly if the disqualified of- <br />ficial does not participate, and the action is ap- <br />proved by tim requisite number of non-interested <br />votes. <br /> <br /> Many difficult questions of fact arise in these <br />cases, particularly with reference to the nature of <br />a disqualifying interest, and it is impossible to <br />make a simple generalization that covers ali cases. <br /> <br /> The Minnesota Supreme Court has listed <br /> five factors which should be considered in <br /> termi.n~ng if'~here is a..disqualifying interest in <br /> these situations: .. <br /> <br /> 1. The nature of the' decision being made. <br /> 2. The nature of the pecuniary interest. <br /> 3. The number of interested officials. <br /> 4. The need, if any, for interested officials <br /> .to make the decision. · <br /> · .5. Other means available, if any, such as an <br /> ~opportunity for review of the decision. <br /> <br /> (Lenz ~. Coon Creek Watershed District, 278' <br /> Minn. 1,153 N.W. 2d 209, 1967.) <br /> <br /> There is far from complete agreement among <br />the various courts on the kinds of interest and <br />the situations that prevent an interested official <br />from taking part in particular official actions. <br />· A review of some of'these, may give some clue to <br />judicial attitudes in particular factual situations: <br /> <br /> 1. Determination of official's right to office <br /> or l~abtfity. On the theory that no man should <br /> the judge of his own cause, courts have generally <br /> held that an officer may not participate in pro- <br /> ceedings involving his own status or liability. <br /> Thus, members of a city commission trying them- <br /> selves or other members for an offense in which <br /> a majority of the commission illegally participated <br /> are within a constitutional prohibition ~hat judges <br /> may' not sit in cases in which they ar, interested. <br /> and their judgment is void. (State ex rel. La Crosse <br /> v. A~,ertll, 110 S.W. 2d 1173 Tex. Civ. App. 1937.) <br /> lhis principle is s° well established with reference <br /> to judicial and quasi-judicial acts that the court <br /> would doubtless have reached the same conclusion <br /> had there been no constitutional or statutory <br /> provision on the subject. <br /> <br /> Similarly, in' Rollins ~. Conner, 74 N.H. 456, <br />169 Ad. 777 (1918), where a council member's <br />election was challenged, the challenged member <br />was held .disqualified to participate in a council <br />decision m the election contest. Likewise the <br />Wisconsin court once held that county board <br />members who were sureties on an official bOnd <br />could not vote on a resolution relieving the sure- <br /> <br /> <br />