Dasburg v. Atchison, T. & S. F. Ry. Co.

113 P.2d 569, 45 N.M. 184
CourtNew Mexico Supreme Court
DecidedMay 19, 1941
DocketNo. 4576.
StatusPublished
Cited by9 cases

This text of 113 P.2d 569 (Dasburg v. Atchison, T. & S. F. Ry. Co.) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dasburg v. Atchison, T. & S. F. Ry. Co., 113 P.2d 569, 45 N.M. 184 (N.M. 1941).

Opinion

MABRY, Justice.

This appeal is from a judgment of the district court overruling and setting aside a prior decision of the State Land Commissioner. The cause was heard de novo, as provided by statute, in the district court, and exclusively upon the record and evidence before the said Commissioner. The controversy grows out of the action of the said Commissioner in executing a contract to appellee Dasburg upon a certain tract of land in Santa Fe county upon which appellant Railway Company had theretofore made improvements in the form of a diversion dam and water pipe line to serve its own facilities and other purposes at Lamy, New Mexico. Appellant company contends, incidental to other defenses, that it has prior rights to and upon the lands occupied by such water supply facilities by virtue of the approval by the Territorial Engineer on November 24, 1908, of its application to appropriate water upon the stream in question and construct such works, all as provided by Chap. 49, of the Laws of 1907, the Territorial Water Code. The Commissioner, also by order to show cause, issued at the same time the contest was filed, instituted a proceeding to cancel the lease for fraud and mistake. This was heard simultaneously with the contest instituted before the Commissioner by the Railway Company. The appeal grows out of the contest proceeding, not out of the proceeding instituted by the Commissioner.

Appellant company filed its contest in 1936 seeking to have the Commissioner revoke and set aside the contract with appellee to purchase the land in question, because of fraud. This contract so attacked was made and entered into by the Commissioner, on behalf of the state, and appellee Dasburg, with payments for the purchase price being distributed, according to the practice, over a period of 10 years. There is no attack upon the authority to sell the land to appellee or upon any other feature of the contract to purchase made by appellee under the rules and regulations of the Commissioner, except as it is controlled by the acts of fraud or mistake.

Had a true statement been made in such application in the first instance, showing the improvements claimed by the company,, no contract would have been made, appellant contends. The substance of the representations made by appellee in said application was that there were no improvements, upon said land at the time of the application, when in truth and in fact appellant company had, some years before, made extensive improvements on a small portion of the tract in question.

Whether such improvements will be protected as against rights acquired by appellee under his contract of purchase is the important question in this case. Appellant believes itself to be protected under the provisions of Chap. 49, the Laws of 1907 which authorize right-of-way upon public lands for the development and transmission of water. Appellee contends that neither this act nor any regular and lawful appropriation of water through proceedings in the Territorial Engineer’s office will avail it, and, in addition, urges other defenses to the company’s claim.

The application of appellant company was. to divert, store and use from January 1st to December 31st of each year, 0.804 acre feet •of water from the Rio del Apache, or Indian creek, a tributary of the Rio Galisteo. 'The evidence shows that water is available in this stream for only a few months in the ■year, and that but little use has b*een made •of the dam facilities and pipe line in the last few years, and but little, if _ any, improvement has been made in the works since their completion some 25 years ago, If such facts could make any difference.

In 1936, and some six years after the contract for purchase had been entered into, appellant company filed a contest before the State Land Commissioner calling his attention to the company’s improvements upon the land in question, pointing out what it considered to be false statements of fact in appellee’s application to purchase, and asking for a cancellation of the contract of 1930 between the state and appellee. Upon hearing, where testimony was taken, the then Commissioner, Hon. Frank Vesely, did modify and amend the contract to purchase by taking from the area theretofore contracted to be sold to appellee, sufficient land to,provide right-of-way for a pipe line, and including the dam site area, but refused to find fraud was involved. There is no suggestion in the record before the Commissioner, including his findings in the matter, that there was a wilful misstatement of facts concerning appellant’s improvements. The trial court likewise found appellee exercised entire good faith in endeavoring to discover improvements upon the land, and further found that the land office officials, upon investigation, concurred in appellee’s view that the section of land involved was free of improvements. Notice was given and an appeal was taken by Dasburg to the District court of Santa Fe county from the order of the Commissioner so modifying and amending his application to purchase, as provided by Sec. 132-184, N.M.Stat. Ann., Comp. Upon trial de novo the district court overruled the contention of appellant company and the said Commissioner' and reinstated the contract of Dasburg as theretofore made.

The company brings this appeal assigning several errors, but the principal arguments are submitted under two points. Point 1 challenges the finding and decision of the court to the effect that the application, appraisement and other proceedings in connection with the contract of purchase were regular and as required by law and the rules and regulations of the Commissioner; that the applicant made honest and good-faith efforts to ascertain whether there were improvements upon the land and that the Commissioner was without authority to cancel or modify the- contract. Point 2 challenges the court’s finding and decision to the effect that the Railway Company had not acquired and had no right-of-way or other right, title or interest in the land and that it was guilty of laches in bringing the contest some six years after the Dasburg contract had been made and he had taken possession of the land. Appellant denies that this is exclusively a proceeding to determine its own rights, although conceding that the Commissioner so treated the case throughout; and suggesting further that the district court perhaps decided the case upon the question of whether or not the Railway Company had acquired any rights, title or interest in the land.

Appellant contends further, that notwithstanding any right which the company may have in the premises, and benefits which may accrue to it if the Commissioner’s decision is sustained, that nevertheless, the Commissioner, in deciding to cancel or amend the contract of purchase, was acting under a broad discretion lodged in him by the Constitution and the laws of the state and that the courts are without jurisdiction to overrule his reasonable exercise thereof. Sec. 132-187, N.M.Stat.Ann., 1929 Comp., gives the Commissioner power to “cancel any lease, contract or other instrument executed by him which shall have been obtained by fraud or executed through mistake or without authority of law.”

Sec. 49 of the Laws of 1907, approved March 19, 1907, created the office of Territorial Engineer and provided for the method of making application and securing permit to divert and appropriate unappropriated waters within the state.

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Bluebook (online)
113 P.2d 569, 45 N.M. 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dasburg-v-atchison-t-s-f-ry-co-nm-1941.