Watson v. Odell

198 P. 772, 58 Utah 276, 20 A.L.R. 280, 1921 Utah LEXIS 34
CourtUtah Supreme Court
DecidedMay 5, 1921
DocketNo. 3576
StatusPublished
Cited by18 cases

This text of 198 P. 772 (Watson v. Odell) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watson v. Odell, 198 P. 772, 58 Utah 276, 20 A.L.R. 280, 1921 Utah LEXIS 34 (Utah 1921).

Opinion

WEBER, J.

The averments of the complaint are in substance (1) That on and prior to June 15, 1915, the Richlands Irrigation Company was a Utah corporation; (2) that the corporation owned certain water rights and real estate, consisting of an option to purchase 20,000 acre-feet of water from the Deseret Irrigation • Company, a preference right under the Carey Act of 10,800 acres of land in Millard county, and certain water rights and reservoir sites; (3) that the Richlands Company represented to plaintiff that it desired to sell its holdings to any one who would pay $260,000 for them; (4) that defendants employed plaintiff to find purchasers ready, able, and willing to purchase the same, and promised to pay plaintiff $30,000 commission for his services; (5) that plaintiff procured certain persons ready, able, and willing to purchase the property defendants had for sale and brought the sellers and prospective purchasers together, and that the persons so found by plaintiff “offered to purchase from said Rich-lands Company the property it desired to sell as aforesaid at the price at which it had proposed to sell to the plaintiff”; (6) that after various conferences between the proposed purchasers and defendants these defendants proposed to the purchasers that, instead of conveying the land and water rights and having the consideration therefor paid to the corporation, it would be better to adopt the scheme proposed in the triparty agreement of May 20, 1916, attached to the complaint as Exhibit A; that as part of the transaction embodied in Exhibit A, dated May 20, 1916, “in consideration of the contract which he [plaintiff] had theretofore made with said corporation and of his rights thereunder, and of his services in procuring said proposed purchasers,” [279]*279the individual defendants agreed with plaintiff to pay him $30,000 as a commission; (8) that the proposed purchasers, after making the contract aforesaid, continued at all times, ready, able, and willing to comply with the terms of the contract and to pay defendants the sum of $260,000, but defendants failed, neglected, and refused to procure the Deseret Irrigation Company to transfer and deliver to the Rich-lands Company, refused to secure the execution by the State Land Bbard of a Carey Act contract, failed to cause the Richlands Company to issue bonds, and was therefore unable to comply with the terms of its contract with the purchasers. Exhibit A, which is attached to the complaint, and is also found in the bill of exceptions, was executed May 20, 1916, with George T. Odell, D. B. Macintosh, and W. C. Alexander as parties of the first part, the Deseret Irrigation Company, a corporation, party of the second part, and Ernest Shields, George T. Franck, Robert P. Franck, and Thomas C. Hickman, of San Diego, Cal., the proposed purchasers, parties of the third part. The first parties agree: First, to cause a certain agreement between second parties and the Richlands Company, as modified, to be ratified, adopted, and confirmed by resolution of the board of directors of the Richlands Company; second, to secure within 30 days from date the execution by the State Board of Land Commissioners of Utah a Carey Act contract between the state of Utah and the Richlands Company in form satisfactory to' the legal firm of Story & Steigmeyer, of Salt Lake City, substantially in the form of Exhibit B, attached to the agreement, and to cause thé Richlands Company’s board of directors to adopt a resolution authorizing and directing the proper officers of the corporation to execute said Carey Act contract on its part, “provided first parties shall not be liable for breach of this covenant if they make an effort in good faith to obtain such a contract from the state and are unable to accomplish such purpose”; third, to cause said Richlands Company to issue its 6 per cent, bonds dated July 1, 1916, in the sum of $300,000, payable in 10 series, one of which shall mature July 1, 1917, and one annually thereafter and to secure said [280]*280bonds by mortgage or deed of trust in favor of Columbia Trust Company, of Salt Lake City, Utah., as trustee, upon all the assets and property of the company; fourth, to cause the Richlands. Company to purchase all of its outstanding stock except 5,000 shares of preferred stock and 5 qualifying shares of its directors for the consideration of $80,000, payable: (a) $13,300 cash; (b) the promissory note of the Richlands Company payable to. W. C. Alexander as trustee, secured by pledge of bonds of said first series, for $12,600; (e) serial bonds of the Richlands Company to be issued aggregating $49,100. “Second party agrees to extend each payment on contract of January 10, 1916, and the contract referred to is otherwise changed and modified. Third parties agree that within five days after first parties have fully performed the covenants by them to be kept and performed to the satisfaction of said Story & Steigmeyer they will purchase and pay for in cash at par bonds of the Richlands in the aggregate principal amount of not less, than $28,000, of which $25,000 shall be used for making the cash payments to first and second parties.”

Attached to the agreement- is a form of state land contract, paragraph 16 of which provides that, if within one year from the execution of the contract the State Engineer shall determine and first party (the state of Utah) shall so notify second party (Richlands Company) that a drainage system is necessary for the reclamation of the lands of said segregation, then within the period fixed in the contract for the construction of works second party shall construct such drainage system according to the specifications approved by the State Engineer of Utah.

The defendants answered the complaint, and after admitting the matters of inducement, and that certain contracts had been entered between plaintiff and defendants, denied all other allegations in the complaint.

Upon these issues a trial to the district court, sitting without a jury, resulted in findings against plaintiff’s contentions and in favor of defendants, upon which judgment was duly entered from which plaintiff appeals.

[281]*281On March 7, 1916, plaintiff and the Richlands Company-entered into a written agreement by which all former agreements and extensions thereof between plaintiff and the Rich-lands Company relating to the sale of the project were can-celled. It wias stipulated that the following commission contract would be recognized “so long as the Richlands Irrigation Company deals with the late J. D.. Mollison’s associates under extensions granted said Richlands Irrigation Company by the Deseret Irrigation Company.” The sale price of the property and assets of the Richlands Company was fixed at $260,000, payable as follows: $25,000 cash; $40,000 with 6 per cent, interest on or before one year from date of first payment; $195,000 in nine equal installments with interest on whole amount unpaid to be paid annually, commission to Watson (plaintiff herein) to be $30,000, payable $10,000 out of the first cash payment of $25,000, $5,000 out of second payment of $40,000, $5,000 out of each of the third, fourth, and fifth installments when paid. It was further provided that in event of the sale of the Richlands project (not including contract for purchase of Deseret water) to the late J. D. Mollison’s associates the following price and commission would be recognized: Price, $67,500, with 6 per cent, interest on all deferred payments, from which a commission of $12,500 would be paid from the installments paid, pro rata as made.

On May 10, 1916, the plaintiff and the individual defendants W. C. Alexander, A. L. Hoppaugh, C. L. Cundick, R. E.

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Bluebook (online)
198 P. 772, 58 Utah 276, 20 A.L.R. 280, 1921 Utah LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watson-v-odell-utah-1921.