|
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 />
|