Ambros, Inc v Municipality of Tinian [1965] TTLawRp 10; 3 TTR 48 (2 June 1965)

3 TTR 48

AMBROS, INC.,
Plaintiff

v.

MUNICIPALITY OF TINIAN and ANTONIO S. BORJA,
also known as ANTONIO BORJA,
Defendants

Civil Action No. 81
Trial Division of the High Court
Mariana Islands District

June 2, 1965

Action to recover debt owed plaintiff as result of sale of quantities of beer by plaintiff to defendant Mayor acting for defendant Municipality. Municipality denied liability on ground Mayor had no authority to enter into such contract, and plaintiff contends Municipality cannot retain benefits of good faith dealings and deny liability. The Trial Division of the High Court, Chief Justice E. P. Furber, held that purchases were within power of Municipality and Mayor's actions were sufficiently binding on Municipality to make it liable for value of goods in question.

1. Statutes – Construction

It is not for courts to question or pass of wisdom of legislative intent, but to allow it full effect within legal limits.

2. Municipalities – Charter

Rule of strict construction of municipal charters followed in United States cannot be applied to that of Tinian where intent of legislature is to control activity of municipality through District Administrator rather than through detailed limitation of municipal powers.

3. Municipalities – Powers

State may itself, or through its municipalities, constitutionally engage in large number of business activities commonly carried on by private enterprise, levy tax to support activity, and compete with private interests engaged in like activity.

4. Municipalities – Powers

Power of state to buy and sell intoxicating liquors within its borders and to authorize municipalities to do so comes within police power.

5. Municipalities – Powers

Power of state to buy and sell intoxicating liquors within its borders and to authorize municipalities to do so is proper method to accomplish governmental purposes and perform governmental function so far as constitutional limitations are concerned, even though for tax purposes such activity may be considered to be private business.

6. Municipalities – Powers

Purchase of beer for resale is within power of municipality and not in defiance of any express policy of Trust Territory law.

7. Municipalities – Powers

Municipality may become obligated on implied contract to pay reasonable value of benefits accepted by it as to which it has general power to contract, even though contract under which benefits obtained may have been irregularly made or unenforceable itself.

FURBER, Chief Justice

OPINION

This action was submitted on briefs on the basis of the following agreed facts:-

1. The defendant Borja in 1961 while Mayor of and claiming to act on behalf of the defendant Municipality of Tinian, ordered and received from the plaintiff beer to the value of $544.50.