Facts
The municipality of Lausanne undertook the study of a new electricity and district heating production plant. The head of the heat-power division assigned work related to this study to an engineering firm, beyond the services formally ordered by the Municipal Council. After the project was abandoned, the engineering firm obtained partial compensation from the municipality for the services provided.Considerations
The Federal Tribunal first examined the rules applicable to the exercise of civil rights and the representation of the municipality as a public law legal entity. It held that the municipality could be bound not only by the legal acts of the Municipal Council, but also by the conduct of other persons having the status of an organ within the meaning of Art. 55 CC, including the head of the heat-power division who independently managed this important project.
The Tribunal then considered that the municipality could be bound by an apparent power of attorney granted to the head of the division, under Art. 33(3) CO, even if his functional relationship was subject to public law. This provision does not exclude a public law legal entity…