Strachan v. Drake

158 P. 310, 61 Colo. 444, 1916 Colo. LEXIS 261
CourtSupreme Court of Colorado
DecidedApril 3, 1916
DocketNo. 8553
StatusPublished
Cited by3 cases

This text of 158 P. 310 (Strachan v. Drake) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Strachan v. Drake, 158 P. 310, 61 Colo. 444, 1916 Colo. LEXIS 261 (Colo. 1916).

Opinion

Mr. Justice Bailey

delivered the opinion of the court.

Plaintiff in error, Alex Strachan, hereinafter called plaintiff, was a farmer possessed of a leasehold estate in a farm containing 138 acres, in high state of cultivation, situated in Larimer County and owned by one James A. Brown. He had been the lessee of these lands for about ten years, during which time he had accumulated approximately $10,-000. Defendant in error, W. A. Drake, hereinafter called defendant, was Strachan’s neighbor, owning adjoining farms. The farm upon which plaintiff resided was divided by a county road, 18 acres lying north and 120 acres south thereof. The 18 acres lying north of the road formed a [446]*446part of the section the remainder of which constituted one of the farms of defendant. The water with which the 138 acres were irrigated was represented by fifteen shares of North Poudre, three and one-half shares of Larimer County No. 2 Ditch, and ten shares of Timberline reservoir stock.

Defendant desired to purchase the 18 acres lying north of the road, and so become the holder and owner of the-entire section of which they constituted a portion, but Brown .refused to sell that tract separately. Defendant went to plaintiff and proposed that the latter purchase the entire Brown farm, and then sell him the 18 acres, and upon plaintiff showing some interest in the suggestion, Drake went to Brown and ascertained the price to be $30,000 for the entire 138 acres, and presently thereafter communicated this price to plaintiff, who feared that the proposition was too big for him to handle, and indicated that he would not undertake to acquire and carry the 120 acres on that basis, suggesting in turn that defendant take what they knew as the “west forty” of the 120 acres in addition to the 18 acres, leaving the remaining 80 acres for plaintiff. Defendant would not at that time accede to this, but told plaintiff that he would take the 18 acres, and if at the time the balance of the purchase price fell due plaintiff felt it necessary to dispose of that quarter section, he would then take it at the price the latter was to pay for it, to-wit: $217.39 an acre.

Later, and on the 18th day of June, 1906, plaintiff, defendant and Brown met at the latter’s office, discussed the proposed deal, and closed it. On that day a written contract was made between plaintiff and Brown, which acknowledged the payment down of $2,000, and stipulated that Brown would convey the 120 acres to plaintiff by warranty deed upon the payment of the further sum of $8,000 on March lst*, 1907, and the giving of a note for the balance of the purchase price, $16,087, due in five years, payment thereof to be secured by mortgage on the 120 acres. On the day [447]*447named plaintiff paid the $8,000, making the total amount paid $10,000, and received a deed according to the terms of the contract. At the time the deal was closed all parties agreed, in order to expedite matters and avoid the making by plaintiff* of a subsequent transfer of the 18 acres to defendant, that instead of making a contract of sale of the whole farm to plaintiff, Brown should deal direct with defendant as to the 18 acres, which was accordingly done by a written contract similar to the one executed between plaintiff and Brown. By the respective deeds resulting from this arrangement the defendant acquired with the 18-acre tract two shares of North Poudre, one-half of a share of Larimer County No. 2 Ditch,' and two shares of Timberline reservoir stock, while plaintiff acquired for the 120-acre tract thirteen shares of North Poudre, three shares of Larimer County No. 2 Ditch, and eight shares of Timberline.

At the meeting referred to, and prior to the execution by Brown of the respective contracts of sale to plaintiff and defendant, the latter made and delivered to the former an instrument in writing, which reads as follows:

“Fort Collins, Colorado, June 18, 1906.

“For one dollar^ cash in hand paid by Alex Strachan to W. A. Drake, the receipt of which is hereby acknowledged, said Drake agrees to purchase of said Strachan for the sum of ($217.39) two hundred and seventeen 39/100 dollars, per acre the following described forty acres of land: The northeast quarter of the northwest quarter of Section 25-7-69; providing that Strachan so elects, on March 1st, 1912. Said Strachan to turn said place over one-half well-seeded to alfalfa — all in good- condition, with water rights with place, same as bought of J. A. Brown.

W. A. Drake.”

When the note, representing the balance of the purchase price, fell due on March 1st, 1912, plaintiff indorsed [448]*448upon the above instrument his election to sell to defendant the forty acres therein described, and soon thereafter notified the latter of such election. Plaintiff undertook to apportion the water stock he had received with the 120 acres under his contract with Brown on a basis of one-third thereof to defendant for the 40 acres described in the instrument above set out, by turning the certificates back to the respective companies and procuring the issuance of new ones, in which he succeeded as to the North Poudre and Larimer County No. 2 Ditch, but failed as to the Timberline stock. He then had the 40-acre tract released from the deed of trust in*favor of Brown upon the whole 120 acres, and executed a warranty deed for the 40 acres in question to Drake, including in it by description one-third of all the respective water shares he had acquired with the 120 acres, and thereupon made tender thereof to defendant, who refused performance on the ground that the contract was not en-' forcible. ■

The facts concerning the water and its relation to the land are as follows: The rights in North Poudre and Larimer County No. 2 Ditch had supplied the land for years, the former being available for irrigation at times later in the season than the latter. Timberline stock represented shares in a reservoir owned by a company, and located in the mountains about forty miles distant, at an altitude indicated by its name, which water was for use late in the season. This reservoir was destroyed by flood during the latter part of June, 1908, just after the contract of sale of the lands in question was made, and the reservoir company decided that it would be impractical to reconstruct it. Defendant had served in the capacity of president of the reservoir company, and at the time of the sale under consideration owned about one-third of its capital stock, the balance thereof being held by divers owners of land located in the vicinity of his farm. He testified that he resigned the office some time previous [449]*449to the commencement of these proceedings, though such fact did'not appear by the records of the company. When Brown closed the deal with plaintiff and defendant he attempted to have the certificate of shares in the Timberline company, then standing in his name, canceled and new ones issued to them for the respective number of shares each was to receive under the contract, but defendant refused to sign certificates of stock as president of the company, upon the ground that he was not in fact such officer. Nor was plaintiff able to ascertain another person clothed with the, authority of that office, and so it was impossible for him to tender to defendant a certificate of shares in the Timberline Company.

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Bluebook (online)
158 P. 310, 61 Colo. 444, 1916 Colo. LEXIS 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strachan-v-drake-colo-1916.