RULE CONTRACTORS' BODY DUES PAYMENTS ILLEGAL
Rule Contractors' Body Dues Payments Illegal Supreme Court Overrules Judge Reis In Opinion Today The state supreme court last week in a unanimous decision ruled that the Associated Wisconsin...
...In an opinion written by Justice Edward T. Fairchlld, the court over-ruled a decision by Circuit Judge Alvin C. Reis, Madison...
...From the allegation of the complaint it appears that, the respondent association levies an assessment on the price to be paid by the public on contracts let to the members of the association...
...this is not lawful...
...Judge Reis set aside Lathers' action, thereby upholding the contractors' group...
...Rule Contractors' Body Dues Payments Illegal Supreme Court Overrules Judge Reis In Opinion Today The state supreme court last week in a unanimous decision ruled that the Associated Wisconsin Contractors, a non-profit corporation of highway contractors, was violating the law when it collected dues from its members...
...It assesses its members one-fourth of 1 per cent of the amount of each contract received In each year...
...Where the complaint shows an assessment on contractors engaging in public works determined by the volume of public business obtained by them, the inference is that the expense will be allocated to the bids and will tend to Increase expenditures on the part of the public with relation to those contracts...
...Lathers countered with an action which sought to have the organization's suit quashed...
...So valued is this method under our public policy that the law casts out as illegal an arrangement to hamper competitive bidding when so limited and so described...
...The contractors' organization had brought an action In circuit court to force William Lathers Jr., Madison contractor, to pay $410 in back dues to the group...
...The public policy which insiat-i upon competition between bidders for public works and dictates that contracts shall be let to the lowest responsible bidder Is violated when prospective bidders enter into an arrangement to extract from each other a percentage 'of the amount of each contract secured' during the ensuing year...
...If the mere tendency or purpose of a contract works against public policy, it is illegal, even though no actual damage be shown...
...Justice Fairhilds opinion said: "An agreement limited to having a common treasury into which a rcrtuin perienlnte of the revenue from public contla11» is In he paid, falls under ennilenin.itiiin nf the rule protecting the freedom and Integrity of competition in securing contracts for publie work...
...As pointed out...
...The purpose of the rule is to prevent contractors from assuming a position where selfish motives may impel them to sacrifice tha public good to private benefit...
...The Associated Wisconsin Contractors consists of members of the highway construction industry, and was created to promote the general interests of Wisconsin contractors...
Vol. 10 • May 1940 • No. 20
