Perry v. Reynolds

122 P.2d 508, 63 Idaho 457, 1942 Ida. LEXIS 50
CourtIdaho Supreme Court
DecidedJanuary 31, 1942
DocketNo. 6953.
StatusPublished
Cited by15 cases

This text of 122 P.2d 508 (Perry v. Reynolds) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perry v. Reynolds, 122 P.2d 508, 63 Idaho 457, 1942 Ida. LEXIS 50 (Idaho 1942).

Opinion

*460 AILSHIE, J.

— This action was commenced, praying for an injunction against appellants, restraining and enjoining them from interfering with respondents’ ditch across appellants’ land's, and enjoining them from disturbing or interfering with respondents using the ditch, conveying water through the same, and for $1,000 damages.

The respondents claimed to be the owners of “The NEl/4 SE%, NE%, and the W% of Sec. 26, Twp. 1, S. Rge. 14 E.B.M.,” comprising 520 acres. The appellants are the owners of the adjoining lands (580 acres), described as follows: “The NE& of Sec. 22; the SE% and the NW% of Sec. 15; and the NE*4, Sec. 16, all in Twp. 1 S. Rge. 14 E.B.M.” These lands are all arid, agricultural lands and require artificial application of water for the growing of crops. A ditch or canal was constructed diagonally across these lands for conveyance of irrigating water in 1887; and water was thereafter carried through the canal to respondents’ land.

Respondent, Bondholders Bureau, Inc., acquired its title to the land by deed dated March 10, 1936. Respondent Perry had the land claimed by respondents under lease and was in possession of the same in 1933, ’34, and ’35, and contracted to purchase it from the Bondholders Bureau, Inc., in 1936. In 1937 appellants plowed in the ditch, claiming that respondents had abandoned and forfeited their right to use the same.

The original complaint was filed February 20, 1940, and thereafter, on March 18, 1940, an amended complaint was filed and served, and the case was tried on the issues therein presented. The case was tried to the court and special interrogatories were submitted to a jury. The findings of the jury were adopted by the court and a decree was entered in favor of respondents against ap *461 pellants, granting the injunction prayed for and awarding $150 damages.

John A. Perry and Bondholders Bureau, Inc. are joined as plaintiffs and all the allegations of the complaint are made by plaintiffs (plural). The only specific reference in the complaint, to the character and capacity of plaintiff, Bondholders Bureau, Inc., is as follows:

“That the plaintiff Bondholders Bureau, Inc., at all times herein mentioned, was, and now is, a corporation organized and existing under and by virtue of the laws of the State of Colorado, and authorized to do and engage in doing business in the State of Idaho.”

Appellants urge that the evidence fails to show that the Bondholders Bureau, Inc., had complied with the constitution (sec. 10, art. 11) and statutes (sec. 29-501, 29-504, and 29-505, I. C. A.) of this state, so as to entitle it to do business in Idaho; and for that reason, it was error for the court to enter findings and decree in favor of the respondents. It is true that there is no proof that the corporation fully complied with the constitution and statutes, in the matter of filing copy of its articles of incorporation and designation of its principal place of business and statutory agent. But no issue was raised by either demurrer or answer as to the capacity of the corporation to either take title to property or transact business in the state. It is contended, however, that the fact that defendants denied the allegation of the complaint above set out (Par. 1-A) is sufficient to raise the issue and render it incumbent on the plaintiffs to prove the corporation’s compliance with the constitution and statute. This would be true, had it been alleged that the company was actually engaged “in doing business” in this state, but such is not the allegation. The allegation is rather that the corporation “was____authorized to do and engage in doing business in the State of Idaho.”

Here there is no showing by either pleading or proof, that the Bondholders Bureau, Inc., was “doing business in this state.” It appears that the Bondholders Bureau, Inc., was a Colorado corporation; that it maintained its principal place of business in Minneapolis, *462 Minn.; and that the contract of sale (Exhibit “0”) was executed in Minnesota and was to be performed there. In other words, the payments provided for were to be made in that state. The real estate covered by the contract was situated in Idaho and, upon completion of payments, the deed was to be executed and delivered. The deed to the corporation was also executed in Minnesota. This does not constitute “doing business in this state,” within the purview and meaning of sec. 10 of art. 11 of the constitution.

A single isolated transaction does not constitute “doing business.” (Adjustment Bureau, etc., v. Conley, 44 Idaho 148, 152, 255 Pac. 414; Portland C. L. Co.. v. Hansen L. & F. Co., 43 Idaho 343, 353, 251 Pac. 1051.)

Furthermore, this is not an action on contract; it is rather a possessory action to prevent a trespass. The contract of sale between the respondents is not in issue between them in this case.

In Bettilyon Home Builders Co. v. Philbrick and Greenwood, 31 Idaho 724, 728, 175 Pac. 958, this court cited and quoted with approval from Bonham Natl. Bank v. Grimes Pass P. M. Co., 18 Idaho 629, 111 Pac. 1078, and thereupon concluded as follows:

“A fair construction of the statute leads to the conclusion that a contract or agreement which cannot be sued upon or enforced in any court of this state, under the prohibition of the statute quoted above, is one growing out of the ‘doing of business in this state,’ or so connected therewith as to be an element of such transaction. When the contract or agreement sued upon proves to be one which was made and performed outside of this state, the question as to whether the foreign corporation was doing business within the state is not material.”

To the same effect, see Foore v. Simon Piano Co., 18 Idaho 167, 108 Pac. 1038; Diamond Bank v. Van Meter, 19 Idaho 225, 113 Pac. 97; Hoffstater v. Jewell, 33 Idaho 439, 196 Pac. 194; Largilliere Co. v. McConkie, 36 Idaho 229, 210 Pac. 207; Bombach v. Sargent Land Co., 242 U. S. 503, 61 L. ed. 460.

A number of assignments of error are made against the sufficiency of the evidence to support the findings and judgment. These specifications are covered by answers to *463 special interrogatories submitted by the court to a jury. The answers to these interrogatories are all adverse to the contentions of the appellants and were approved and adopted by the court, as special findings on the issues so submitted. They are as follows:

“INTERROGATORY NO. 1.

“Did the plaintiffs or their predecessors in interest during any five consecutive years divert from Soldier Creek during the irrigation season by means of the headgate and ditch claimed by them and conduct through said ditch and beneficially use any of the waters of Soldier Creek? Answer: Yes.

INTERROGATORY NO. 2.

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Bluebook (online)
122 P.2d 508, 63 Idaho 457, 1942 Ida. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-v-reynolds-idaho-1942.