McDonald v. McDonald

302 P.2d 726, 61 N.M. 458
CourtNew Mexico Supreme Court
DecidedOctober 18, 1956
Docket6080
StatusPublished
Cited by1 cases

This text of 302 P.2d 726 (McDonald v. McDonald) 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
McDonald v. McDonald, 302 P.2d 726, 61 N.M. 458 (N.M. 1956).

Opinion

MACPHERSON, District Judge.

In the late Fall of 1924, three brothers by the name of McDonald purchased a cattle ranch in Socorro County, New Mexico, which the United States Government subsequently took over and leased to form part of the Alamogordo bombing range.

This suit involves a determination of how compensation paid and to be paid by the Government under Title 43 U.S.C.A. Chapter 8A, § 315 ét seq., for the use of the ranch as a bombing range for war and national defense purposes, should be divided between two brothers, Dave McDonald and Ross McDonald, the third brother, Rube McDonald, having theretofore sold his interest in the ranch and facilities to his brother, Ross McDonald.

Hereafter, in most instances, the plaintiff below and appellant here, Ross McDonald, will be referred to as Ross; the defendant below and appellee here, Dave McDonald, will be referred to as Dave; and Rube McDonald, the third brother who sold to plaintiff, will be referred to as Rube.

On November 14, 1924, Ross, then aged 25; Dave, then aged 22; and Rube, then aged 21, entered into the cattle business by purchasing 232 head of cattle and the homestead entry rights to 640 acres of land containing a water well (the only permanent water in a large area). Shortly thereafter, leases were obtained in the name of McDonald Brothers on three sections of state land for grazing purposes. Federal public domain was then unrestricted for grazing, and the brothers made free use of the federal domain adjacent to the ranch. After homestead was perfected, title was taken in the name of Dave and Rube only, but both always recognized Ross’ one-third interest therein. For several years the ranch operated successfully, most transactions being conducted in the name of McDonald Brothers, all income and expense being commingled, and each brother taking one-third of the profits. The entire ranch operation depended upon the permanent water available on the fee land, and upon a dirt water tank about four miles south, located on federal domain (the source of water for which is not disclosed in the record).

On June 28, 1934, Congress passed the Taylor Grazing Act, 43 U.S.C.A. §§ 315-315r, which ended the free unrestricted use of federal domain for grazing purposes, but authorized the Secretary of the Interior to issue grazing permits thereon. The brothers then proceeded under this Act and received a federal permit in the name of McDonald Brothers to graze 444 head of cattle on portions or all of some 44 federal sections. In 1938, this Taylor permit was renewed for a ten-year period. The McDonald ranch, including the fee land, state leases, and federal permit, then comprised some 22,000 acres, including ranch headquarters improvements, fences and corrals.

Apparently at the insistence of Ross, a contract was drawn by a notary public on July 25, 1936, and signed by the three brothers, stipulating that each owned a one-third interest “in all real estate in Socorro County”, valuing same at $7,500, and restricting the sale of the “real estate or leases” for two years to anyone except the parties to the agreement. The agreement further provides that any brother may remove his individual cattle from the premises at any time, in which event the remaining brothers will maintain the taxes and leases and pay the other brother $1 per head per annum for all stock so removed (with exception in case of general drought). At the end of two years, the restriction concerning the sale is ended, and any brother can sell to an outsider or move back on the property “and be entitled to one-third of the grazing privileges, and to run one-third of the stock which is handled on said property.”

Thereafter, each brother owned and ran his own cattle. Nevertheless, they continued to pool all receipts, to share all expenses, and to conduct ranching operations essentially as before. By and large, as might be expected of brothers, few records were kept, honest dealing prevailed among them, and few disputes arose.

On February 26, 1941, the youngest brother, Rube, sold to his older brother, Ross, the aforesaid plaintiff, for a consideration of $4,000, his “undivided interest which consist— of Y$ of the said MacDonald’.? Brother— ranch”; he further agreed to turn over to Ross “all state leases and Ys interest in one patented section.” A few days later, a formal relinquishment of the state leases from Rube-to Ross was filed in the State Land Office, and a warranty deed was executed by Rube and his wife in favor of Ross, and duly recorded, conveying Rube’s one-third interest to the fee land and the dirt tank on public domain, all buildings, fences, improvements, and appurtenances. Rube thereupon removed his cattle from, the ranch.

Ross and Dave continued to condhct- cattle operations on the ranch. Each rati approximately the same number of cattle, and once again pooled all income and shared all expenses, on a fifty-fifty basis (with minor exceptions now immaterial), both largely ignoring the fact that Ross had acquired Rube’s interest in the ranch, except that Dave acknowledged his right to run cattle beyond one-third of the ranch’s capacity was at the sufferance of Ross.. Things were continuing on this “happy-go-lucky” basis, when the Federal Government came into the picture, and if money be the root of all evil, what transpired between these two brothers since then fully exemplifies the truth of this adage.

About October, 1941, the United States Government notified plaintiff and defendant, as well as their surrounding neighbors, that all territory used by them had been set aside for war purposes, and to move out all livestock- at the Fall roundup. In December of the same- year all grazing permits were cancelled. > The brothers removed their cattle from theTa'nch on April 16 and 17 of 1942, disposed of the same shortly thereafter when other pasturage was unavailable and, 'in effect, gave up and abandoned their cattle business of seventeen years duration. '

. On July 9, 1942, Congress amended the Taylor Grazing Act (by passing Statute, 43 U.S.C.A. § 315q, providing for the withdrawal of public domain for war purposes and authorizing the payment to- persons holding grazing permits or'licenses of such amounts for cancellation of grazing permits as should be determined by the head of the federal department or agency using the land to be “fair and reasonable for the losses suffered by such persons as a result of the use of such lands for war or national defense purposes.”

Pursuant to this Act, and following long negotiations, largely conducted and successfully prosecuted by Dave, something over $70,000 has been paid, and $7,635 is being paid yearly, not to extend beyond June 30, 1970. Whether these monies should be divided between Ross and Dave on a 50-50 basis, or on a %rd and Várd basis, is the exact problem for determination.

Before we can squarely face this issue, however, further facts demand our attention.

While the lengthy negotiations for a settlement were being conducted with the War Department, both brothers signed a letter to the Army Engineers’ office in support of their claim for damages, dated February 28, 1945, which contained the following paragraph:

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302 P.2d 726, 61 N.M. 458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-mcdonald-nm-1956.