Thompson v. L. J. Voldahl, Inc.

This appeal in equity presents a problem of restitution — the so-called “recovery back” problem which arises when a contractor has received payment for construction of a public improvement under a purported contract which was actually invalid because of procedural irregularities by public authorities.

Several circumstances are important. The supervisors and the contractors acted in good faith; no fraud or concealment existed. The contractors did not hasten to the courthouse to get their money, knowing that the public’s proceedings were invalid. The contractors’ charges were fair and…