Hodges Irr. Co. v. Swan Creek Canal Co.

181 P.2d 217, 111 Utah 405, 1947 Utah LEXIS 85
CourtUtah Supreme Court
DecidedMay 21, 1947
DocketNo. 7005.
StatusPublished
Cited by3 cases

This text of 181 P.2d 217 (Hodges Irr. Co. v. Swan Creek Canal Co.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hodges Irr. Co. v. Swan Creek Canal Co., 181 P.2d 217, 111 Utah 405, 1947 Utah LEXIS 85 (Utah 1947).

Opinions

WADE, Justice.

The Hodges Irrigation Company, a mutual irrigation company, commenced this action against the Swan Creek Canal Company, also a mutual irrigation company, for contribution of expenses for the maintenance and operation of a canal used by both companies as provided by Sec. 100-1-9, U. C. A. 1943, to which suit the defendant answered that their respective liabilities for maintenance and repair were governed by a contract entered into in 1903 between it and plaintiff’s predecessor in interest. From a judgment of no cause of action plaintiff appeals.

The Swan Creek Canal Company, the respondent herein, and its predecessors in interest, had originally constructed a canal to carry its irrigation waters from Swan Creek, which is about three miles north of Garden 'City in Rich *407 County, Utah. In 1903, the Hodges Land, Livestock and Milling Company, the predecessor in interest of appellant herein which was then a stockholder in the Swan Creek Canal Company and was using this canal to carry its waters, desired to enlarge the capacity of this canal so as to be able to carry more of its waters and therefore entered into a written agreement with respondent to increase the capacity of the canal by enlarging it at certain points and by building a flume at a point near the head of the canal. At the time this agreement was entered into the entire capacity of the canal was 21 or 22 c. f. s. of which appellant’s predecessor in interest was entitled to one-third and respondent herein to two-thirds. After the flume was constructed and the canal enlarged under the terms of the contract, the capacity to carry water was more than doubled and as a result appellant was able to carry 28 c. f. s. of its water through it and respondent 21 c. f. s. In 1924 and 1925 appellant removed the flume and widened the canal about three feet. In 1926 a new weir was installed and since that time appellant and respondent each received one-half of the water carried in the canal.

Under the terms of the agreement respondent had been paying $6 per year in cash or labor as its share of the expense for the repair and maintenance of that part of the canal in which the flume was placed which was at the point of appropriation in Swan Creek and ran for approximately 1800 feet around a rocky terrain and was the most difficult part of the entire system to maintain and repair. After the flume was removed, appellant requested respondent to pay half of the expense of the maintenance of the entire canal, including the part in which the flume had formerly been. Respondent was of the opinion that the agreement was still in force and that under its provisions it was only obligated to pay $6 per annum for the repair and maintenance of the 1800 feet of the canal where the flume had formerly been placed. In the settlements of accounts between appellant and respondent from 1903 until 1927, respondent always paid in cash or labor $6 as its share of the expense for the *408 maintenance and repair of the canal where the flume was placed. After 1927 and after the flume was removed, a controversy arose between appellant and respondent as to how much respondent should pay as its share of the expense of maintenance of that part of the canal in which the flume had been. Respondent’s witnesses testified that in all of its settlements of accounts with appellant its share of the expenses for the 1800 feet where the flume had formerly stood were based on the provision in the contract which obligated it to pay $6. This was disputed by appellant’s witnesses. The evidence was not certain as to whether respondent had always paid the $6 each year after 1927 since the time and method of settlements of accounts between the companies was informal and did not always take place every year. However, there was evidence that respondent paid appellant’s secretary $6 for its share of the expense of maintaining the 1800 feet in 1944 and that in 1946 appellant refused such a payment for the year 1945.

The court found that from 1927 up until 1945 there had been settlements of accounts between the parties to the action in which the obligation of the respondent herein to maintain the canal at the point where the flume had been located was accounted as $6.00 as provided in the contract and that the contract was clear and unambiguous and that there had been no change in circumstances which would alter the contract. That the contract was in full force and binding upon the parties relative to the maintenance of the canal and that Sec. 100-1-9, U. C. A. 1943 does not apply as the rights of the parties are governed by the contract of 1903.

Appellant assigns these findings and the judgment in accordance therewith as error.

Appellant argues that the contract is not so worded that it clearly relieves respondent of its statutory duty under Sec. 100-1-9, U. C. A. 1943, to contribute its share to the maintenance and upkeep of the entire canal, and that from the time the flume was removed the provision in the contract referring to the flume or canal where the flume was placed had no further effect and the $6 payment provided for *409 therein only applied so long as the flume was maintained in the canal in good condition.

The parts of the agreement of 1903 which are pertinent to our problem read as follows:

“Whereas, said second party [appellant’s predecessor] is desirous of enlarging the same at certain points and of placing in the bed of the same at a point near the head thereof a board flume of such dimensions and so placed as not to disturb or damage the bank of the canal at said point; and,
“Whereas, the annual cost of cleaning said canal at the points where said second party proposes to enlarge the same amounts to about fourteen cents per share and the annual cost of the cleaning of the same at the point where said flume is to be located amounts to $6.00.
“Now, therefore in consideration of the premises and of the mutual covenants and agreements of the parties hereto, said first party hereby consents to the enlargement of said canal as aforesaid and to the construction of said flume and annually for the period of five years to pay in cash or labor at the option of said first party, fourteen cents per share on the outstanding capital stock of said first party, toward the expenses necessary in cleaning and repairing such enlarged parts of said canal, and forever after the expiration of said period of five years, the expenses of cleaning and repairing said canal at such points shall be borne by said parties in proportion to their respective interests in and to the waters of the same. Said first party also agrees to pay to said second party the sum of $6.00 per annum in lieu of the expenses of cleaning and repairing said canal where said flume is to be located, so long as said second party shall maintain such flume and canal where same is placed in good repair and condition.

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Related

Bullough v. Sims
400 P.2d 20 (Utah Supreme Court, 1965)
Gunnison-Fayette Canal Company v. Roberts
364 P.2d 103 (Utah Supreme Court, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
181 P.2d 217, 111 Utah 405, 1947 Utah LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodges-irr-co-v-swan-creek-canal-co-utah-1947.