Lights running without disconnect switch
That looks like where a main breaker goes, and the stuff in there looks like the damaged guts of a main breaker.  I supremely doubt this is for the outside lights.  

This an extreme hazard being just like it is. I strongly recommend you get an electrician out to fix it before it burns someone's hand.  What's more, it appears that something that is supposed to be breaker-protected, isn't.  So the protection is gone, opening the possibility of a fire.