Twin Falls Canal Co. v. American Falls Reservoir Dist. No. 2

59 F.2d 19, 1932 U.S. App. LEXIS 3298
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 23, 1932
DocketNo. 6613
StatusPublished
Cited by5 cases

This text of 59 F.2d 19 (Twin Falls Canal Co. v. American Falls Reservoir Dist. No. 2) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Twin Falls Canal Co. v. American Falls Reservoir Dist. No. 2, 59 F.2d 19, 1932 U.S. App. LEXIS 3298 (9th Cir. 1932).

Opinion

NETERER, District Judge

(after stating the facts).’-'

Two questions are presented: First, is American Falls reservoir district No. 2 a party in interest — the proper party defendant?

It is obvious from the findings of fact and the record that not only is title to the system in issue in the United States, but that it has exclusive control and entire supervision of construction and will have until the project is completed, and the management and operation will remain in it until otherwise provided by tifie Congress. 43 USCA §§ 498, 523, 524. Livanis v. Northport Irr. Dist., 121 Neb. 777, 238 N. W. 757; Id., 120 Neb. 314, 232 N. W. 583.

Appellee has had no power over, or voice, control, or power in the management, control, or operation of the works or project, and no conceivable theory is pointed out, nor is such known to the court, how trespass of the United States in such construction, maintenance, or operation can be charged against appellee. Malone v. El Paso County Water Imp. Dist. No. 1 (Tex. Civ. App.) 20 S.W. (2d) 815. There is no distinction between the principle involved in the Malone- Case and that involved in the instant case. The maintenance, operation, control, etc., in each case was in the United States, and section 6 of the Federal Reclamation Act (43 USCA §§ 491, 498) applies to eaeh. The findings, supported by the evidence, are conclusive that appellee had not succeeded to the management, operation, or control; and that is the decisive factor. The nature of the claim is not material. No liability against appellee is established.

Nor do the provisions of section 21 of the contract between appellee and the United States change the actionable relation. The most favorable cqnstruetion would make appellee surety to the United States, and subject it to no greater liability than accrued against the United States, and grant to the United States the right to sue appellee- as one for whose benefit the provision was made. 21 R. C. L. 974, 975.

“A surety is ‘a favored debtor.’ * * * His contract exactly as made is the measure of his liability; and, if the ease against him be not clearly within it, he is entitled to go acquit.” Magee v. Manhattan Life Ins. Co., 92 U. S. 93, 98, 23 L. Ed. 699. See, also, [23]*23City of Pocatello v. Fargo, 41 Idaho, 432, 242 P. 297, 307.

Section 5662, Comp. Stat. Idaho, on which appellant relies, provides: “A contract, ma do expressly for the benefit of a, third person, may bo enforced by him at any time before the parties thereto rescind it.”

The contract referred to must he taken as a whole, and the concluding words of paragraph 21 thereof, “to keep the United States harmless therefrom,” must control. Tho limitation is specific. Appellant was not a party to the contract. Nor was benefit expressly, distinctly, or explicitly to accrue to it. No intention of the parlies to secure to appellant personally the benefits of this provision appears. There is nothing indicative that appellee and the United States had in view any other party or parties, or any other thing or person except their own advantage. Sayward v. Dexter, Horton & Co., 72 F. 758, 765 (C. C. A. 9). The contract is under seal, and appellant, not being in privity with either party, and it not being expressly made for appellant’s benefit, can claim no right thereunder.

“The rule that may be formulated under the federal decisions permits a third person not a pa tty to a contract to enforce the promisor’s obligation only where he is the beneficia rv solely interested in the promise.” In re Gubelman (C. C. A.) 13 F.(2d) 730, 731, 48 A. L. R. 1037. See, also, Evans v. Sperry (D. C.) 12 F.(2d) 438, 440; Hendrick v. Lindsay, 93 U. S. 143, 23 L. Ed. 855; Cavanaugh Bros. Horse Co. v. Gaston, 255 Mass. 587, 152 N. E. 623, 47 A. L. R. 1.

The foregoing shows affirmance. But, in view of the issue involved and the voluminous record, we follow Judge Cavanah, who tried the case, and proceed to consider the merits, and the second question: Does appellee transgress any right of appellant?

“The right to divert and appropriate tho unappropriated waters of any natural stream to beneficial uses, shall never be denied.” Article 15, § 3, Constitution of Idaho.

The south, north, and appellee districts each have appropriated water for beneficial uses. The trial court recognized the right of appellant to the volume of water actually appropriated for beneficial purposes, and the right to all water actually appropriated, dive lied, and used. The extent of beneficial use is an inherent and necessary limitation upon the right. There is no contention at bar or in brief that appellant is deprived of any water within a claim of right or at all. But contention is made that, but for the dam, the water in the river would not he raised to such level of tho base of the diversion canal as to enable the government, or appellee, to divert any of tho waters of the river; and for the benefits thus obtained appellee should contribute to the cost of construction and maintenance. If this contention is sound, the purpose of the laws (Comp. Stats. Idaho, §§ 5556, 5559, 5606) would be defeated and appellant would have the controlling interest of the river for 25 miles of slack water upstream, irrespective of beneficial use, and the policy of the state to reserve the waters of the river for public benefit would be defeated and result in such monopoly as to work disastrous consequences to the public good. Appropriation is not a,n unrestricted right, but a right which must be asserted with relation to the rights of the public; and to the extent that appellant has appropriated the water for beneficial uses the right has accrued and vested and appellant must be protected in the enjoyment thereof. Basey v. Gallagher, 87 U. S. (20 Wall.) 670, 22 L. Ed. 452. It would render meaningless section 5624 of the Compiled Statutes of the state, granting permission, on compliance with stated conditions, to use the bed and/or natural water course of Snake river for carrying the stored waters from American Falls reservoir and the Mini-doka project.

The trial court found for appellee, and, we think, in harmony with the law of Idaho and with the intent of section 946, title 43 USCA, which limits tho right to the extent of the ground occupied by the reservoir and canals and laterals, and provides that: “The privilege herein granted shall not he construed to interfere with the control of water for irrigation and other purposes under authority of tho respective States or Territories.” 43 USC A § 946.

And section 949, title 43, USC A, provides that: “Nothing in sections 946 to 949; inclusive, shall authorize such canal or ditch company to occupy such right of way except for the purpose of said canal or ditch, and then only so far as majr be necessary for the construction, maintenance, and care of said eanal or ditch.”

The provision of this section embraces, no doubt, the i-eservoir and entire property. United States v. Big Horn Land & Cattle Co. (C. C. A.) 17 F.(2d) 357, 365; United States v. Tujunga Water & Power Co. (C. C. A.) 48 F.(2d) 689, 692.

In Hutchinson v. Watson Slough Ditch Co., 16 Idaho, 484, 101 P. 1059, 133 Am. St. [24]*24Rep. 125, the court held that an acquired easement (as is appellant’s right) does not give the holder exclusive private control, or authorize obstruction of such highway to the use of other persons.

In Doherty v.

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Bluebook (online)
59 F.2d 19, 1932 U.S. App. LEXIS 3298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twin-falls-canal-co-v-american-falls-reservoir-dist-no-2-ca9-1932.