North Platte Canal & Colonization Co. v. United States

48 Ct. Cl. 281, 1913 U.S. Ct. Cl. LEXIS 112, 1912 WL 1193
CourtUnited States Court of Claims
DecidedApril 7, 1913
DocketNo. 30608
StatusPublished

This text of 48 Ct. Cl. 281 (North Platte Canal & Colonization Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Platte Canal & Colonization Co. v. United States, 48 Ct. Cl. 281, 1913 U.S. Ct. Cl. LEXIS 112, 1912 WL 1193 (cc 1913).

Opinion

Howry, J.,

delivered the opinion of the court:

The matter to be considered arises out of a demurrer to the petition.

It is alleged that a contract between plaintiff and the State of Wyoming was entered into for the construction of the principal canal described in the pleadings (and the lateral ditches thereto), which contract was subsequently changed on the application of the United States to the plaintiff whereby the General Government should have the right to enlarge and extend the canal and to occupy and use the [288]*288right of way acquired by the plaintiff from Wyoming. The object of the original contract with the State was the distribution of the necessary quantity of the waters of the North Platte Kiver for the irrigation and reclamation of a large body of arid land. The allegations of the petition are that permission had been properly obtained by plaintiff to divert the waters of the river mentioned and to that end plaintiff had obtained the necessary rights of way upon which to construct the canal. The contract made between plaintiff and the United States provided that the defendants should have the right to occupy and use the rights of way acquired by plaintiff to enlarge and extend the canal and its lateral subsidiaries. By way of consideration, the United States agreed to complete the enlargement and extension to a point named, in time for beneficial use during the irrigation season of the year A. D. 1906, and to carry in the enlarged and extended canal (and deliver the same to the plaintiff) all of the water claimed by the corporation under its permit, for use upon all of the land during the irrigation season of the year mentioned, and continuously thereafter. The contract between plaintiff and the United States was executed for the defendants by the Secretary of the Interior and was approved by the State of Wyoming. Further allegations disclose that plaintiff kept and performed all the provisions and conditions of the agreement, but that defendants, in disregard of the obligations of the contract and over plaintiff’s protest, neglected and refused to perform the things specified in their agreement. The alleged violation of the agreement is stated to be the refusal of defendants to deliver to the plaintiff any portion of the water for beneficial use during the irrigation season for the year 1906, and did not complete the enlargement and extension of the canal sufficiently for the delivery of any water to plaintiff during all or any sufficient portion of the irrigation season of the year 1907. Plaintiff further alleges that relying upon its contract with the Government the corporation sold unto persons settled and living upon the lands perpetual water rights for the use of about 16,200 acres of land, and that upon contracts for the sale of these lands there was an aggregate of deferred [289]*289payments due to plaintiff of $20,196.92 from the purchasers. The failure of defendants to deliver the water and keep their other covenants, it is further alleged, obliged plaintiff to extend the time, without interest, for the payment of certain deferred payments upon each and all of its water-rights contracts whereby damage ensued by the loss of interest due on these contracts.

The second principal count in the petition contains an allegation that plaintiff had sold for cash to the Rawhide Ranch Company paid-up perpetual water rights for water to be delivered from the canal for beneficial use and irrigation upon lands situate and lying under and in the vicinity of the main canal and subject to irrigation by the waters therefrom under the permit. The charge is that the ranch company, relying upon the conditions set forth in the plaintiff’s contract with the United States that water would be delivered to the ranch from the canal for beneficial use during the irrigation season of 1906, planted and cultivated a large body of land, but by reason of the failure of the Government to keep its promises there was a loss to the ranch company of several thousand dollars, which disabled it from paying to the plaintiff the sums agreed to be paid to the corporation for the use of the water, either by the corporation itself or by those with whom plaintiff dealt.

The amount demanded on this count aggregates $13,745.04 as losses sustained by the ranch company which plaintiff had to pay.

The claim was presented to the Secretary of the Interior, who in writing rejected the same upon the ground that the allegations of fact upon which the claims were based were not admitted by the officers of the Reclamation Service.

The demurrer sets forth generally that the petition does not allege facts sufficient to constitute a cause of action, but that the damages, if any, as claimed by plaintiff are consequestial and sound in tort. In further demurring to the specific items, the grounds stated by the defendants are that the items are respectively for anticipated profits, speculative in their nature and contingent and too remote from the contract to be recovered in this action for breach of the agreement.

[290]*290The contract of the defendants was made with full knowledge on the part of the United States of all of plaintiff’s rights covering the right to irrigate certain segregated lands and certain rights to the use of water from the river. Plaintiff was given the right to enlarge the principal canal partly constructed at the time of the execution of the agreement and to occupy and use the right of way for all purposes of maintaining and operating a canal and the right to extend the same over the right of way claimed by the plaintiff. The consideration for the transfer of the rights named in the contract appears to have been expressly stated that “ in consideration of the premises and for benefits as hereinafter specified, accruing to the party of the second part and the sum of one dollar to it in hand paid.” The other benefits accruing to plaintiff were stated to be that defendants should carry in the canal the waters claimed by plaintiff under its permit; that defendants would not make any agreement to deliver water on their own account by any land to be irrigated under the permit to divert water until the owner of such land should have contracted for water with plaintiff; and that the defendants complete the canal to the east line of the Carey Act lands in time for beneficial use during the irrigation season of 1906. Plaintiff agreed to guarantee the payment of 40 cents per acre per annum for a period of 10 years as a proportionate charge for the maintenance and operation of the canal; to make provision that all parties with whom contracts had been or would be made for water rights should bind themselves to pay all of the maintenance charges.

Defendants failed to deliver the water to which plaintiff was entitled during the irrigation season of 1906 and did not complete the canal sufficiently for the delivery of the water for beneficial use upon all of said land during any sufficient portion of the irrigation season of 1907.

But water rights were sold to persons living upon the land to be irrigated by plaintiff in 1905, from which it would have derived the consideration in the way of profits contemplated by the contract if defendants had fulfilled their obligations. The demurrer admits all of the facts well pleaded.

[291]*291It is argued by defendants that in the matter of the sale to the Eawhide Ranch Co.

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Related

Bigby v. United States
188 U.S. 400 (Supreme Court, 1903)
Cooper v. Cooper
17 N.E. 892 (Massachusetts Supreme Judicial Court, 1888)

Cite This Page — Counsel Stack

Bluebook (online)
48 Ct. Cl. 281, 1913 U.S. Ct. Cl. LEXIS 112, 1912 WL 1193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-platte-canal-colonization-co-v-united-states-cc-1913.