Kuhn v. Buhl

96 A. 977, 251 Pa. 348, 1916 Pa. LEXIS 473
CourtSupreme Court of Pennsylvania
DecidedJanuary 3, 1916
DocketAppeal, No. 233
StatusPublished
Cited by65 cases

This text of 96 A. 977 (Kuhn v. Buhl) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kuhn v. Buhl, 96 A. 977, 251 Pa. 348, 1916 Pa. LEXIS 473 (Pa. 1916).

Opinion

Opinion by

Mr. Justice Moschzisker,

This case was tried in accordance with the Act of April 22, 1874, P. L. 109, by a judge without a jury; the action was in assumpsit, the plaintiffs claiming $275,000 under a written contract. After receiving evidence of the steps leading up to what the trial judge found to be the agreement in question, also concerning the conduct of the parties at the time of, and immediately after, the execution of the writing sued on, the court below concluded that the contract was void as against public policy, and entered judgment in favor of the defendant; the plaintiffs have appealed.

The material facts in the case as found by the trial judge are given more at length in the notes of the reporter published in connection herewith; but, so far as [362]*362necessary to develop the principles involved, they may be more briefly stated thus: Under what is known as the “Cary Act,” the State of Idaho was granted authority to control, to a certain extent, the public lands of the federal government within the confines of that Commonwealth. In pursuance of this authority, the general assembly of Idaho established a system for carrying out the provisions of the federal statute, and the parties to the present controversy proceeded under this legislation. A State Board of Land Commissioners was constituted, consisting of four members, and this board was authorized to pass upon all applications, or proposals, for the segregation of public lands for purposes of irrigation and subsequent sale to settlers. The Idaho statute does not authorize the reclamation of the lands through irrigation by the state itself, but provides for the doing of this by others, under a contract with the state. In order to obtain a contract to do such work, one has to file with the Board of Land Commissioners an application, or proposal, setting forth certain details prescribed in the statute, and this must be accompanied by a certified cheek “for not less than $250 and not more than $2,500 ......as a guarantee of the execution of the contract by the applicant in accordance with his request and proposal in case of the approval of the same by the state.” On March 14, 1908, the five legal plaintiffs in this case filed a request for the segregation of, and proposal to irrigate and reclaim, approximately 600,000 acres of desert land. On June 3,1908, the Twin Falls Land and Water Company, a corporation, filed a like request and proposal for about 380,000 acres of the same lands included in the application of the plaintiffs. Frank H. Buhl, the defendant, was the president of the Twin Falls Company, and, in all the subsequent dealings hereinafter referred to, acted for that corporation. On June 22,1908, at one and the same time, the land commissioners ordered an examination of both applications. While the applications in question covered, in whole or in part, the same [363]*363lands, the proposals differed in several particulars, viz: in the source of the water supply and the points where the waters were to be diverted, in the plan or system of irrigation and cost thereof, and finally, in the fact that the plaintiffs proposed to “sell water rights and proportionate shares in the completed irrigation works to settlers at $45 per acre, payable $3 per acre at the time of sale, and the balance in not less than ten equal annual installments, while the proposal of the Twin Falls Company was to sell the same water rights and proportionate shares to settlers at $50 per acre, to be paid in five equal annual installments, with interest on the deferred payments at the rate of 6 per cent, per annum.” Both the Kuhn interests (represented by the plaintiffs) and the Buhl interests (represented by the defendant) had been engaged within the State of Idaho in irrigation projects for some years, and the state, officials were anxious to retain the active participation of each of these groups in this field of endeavor. In the latter part of July, 1908, when the two applications were pending before the State Board of Land Commissioners, one of the legal plaintiffs came to Pennsylvania for the purpose of conferring with the defendant relative to their rival proposals. After several talks, on July 30,1908, at East Sharon, Pennsylvania, an agreement was reached that Mr. Buhl, acting for the Twin Falls Company, should ^pay $300,000 to the plaintiffs, and that the latter should formally appear before the land commissioners in Idaho and withdraw their pending application, thus leaving the field open to the defendant and the interests which he represented to secure the sought-for irrigation rights.

In pursuance of the agreement as just stated, on August 4, 1908, the written contract in suit was prepared and executed, and six days thereafter the parties appeared at a meeting of the land commissioners in Idaho, which had been arranged for the purpose, and the plaintiffs’ proposal was formally withdrawn. In making this withdrawal a representative of the plaintiffs addressed [364]*364the commissioners and assigned as a reason for abandoning their application that his people were engaged in a great many large enterprises within the State of Idaho, and, therefore, felt that they had about as much as they could handle for the next two or three years. The written contract between the parties did not stipulate the formal withdrawal of plaintiffs’ application, but it provided that, for a consideration of $300,000, the plaintiffs should sell and transfer to the defendant all their interest therein, and also “all maps, plans, surveys and estimates made by or for them in connection with the segregation or irrigation of the lands referred to in said application,” adding, “such assignment to be made in the event that the said Frank H. Buhl or his associates shall be able to procure the segregation already applied for by him”; it further provided that $25,000 of the consideration mentioned must be paid to the plaintiffs “ten days after the State Land Board of Idaho should formally signify their intention to recommend the segregation (of the lands in question) to the party of the second part and his associates (being the defendant and the interests he represented)The fact of the existence of this written contract was not made known to the board of land commissioners, nor was anything said at the meeting concerning the consideration called for therein. The minutes of the meeting show the withdrawal of the plaintiffs’ application “for the segregation of about 600,000 acres of land,” and the granting of the defendant’s application for “about 380,000 acres,” with the right to the Twin Falls Company to amend its proposal by including more land, it being expressly stated, after noting the withdrawal of the plaintiffs’ proposal, that the application of the defendant was “the only proposal for said lands now before the board.” Immediately after this meeting of the land board, the Twin Falls Company held a meeting and authorized the payment of the $25,000 stipulated for in the written agreement, and this sum was subsequently handed to the legal plaintiffs. When [365]*365the time fixed in the contract for the payment of the balance, or $275,000, arrived, it was not forthcoming, and the plaintiffs instituted the present action to recover the amount with interest.

The plaintiffs contend, as they did in the court below, that the sought-for grant was not a franchise, that there was no competitive situation, and therefore, the contract in suit was in no sense harmful to.

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Cite This Page — Counsel Stack

Bluebook (online)
96 A. 977, 251 Pa. 348, 1916 Pa. LEXIS 473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kuhn-v-buhl-pa-1916.