Harbison v. Mallon

PLUMMER, J.

This is an action by plaintiffs to recover the sum of $16,766 alleged to be due from the defendants for and on account of certain contracts hereinafter mentioned. The defendants had judgment and the plaintiffs appeal.

On the fifteenth day of November, 1916, the plaintiffs and defendants entered into a contract in writing by the terms of which the plaintiffs leased to the defendants a certain tract of land for the period of two years for the purpose of growing rice, at a specified cash rental per acre. This contract provided that the defendants should construct and install an irrigation system conducting water to certain lands, including the lands belonging to the plaintiffs, specifying in general language the work to be performed, including drains, headgates, etc. The contract also provided that at the expiration thereof, the appellants were to convey an interest in the entire irrigation system constructed by the lessees, by which said lands were to be irrigated to such extent as they (the appellants’) lands bore to the whole acreage then irrigated, or to be irrigated by said irrigation system; that the irrigation system should be free from all indebtedness. The contract further provided that it was understood and agreed that the parties thereto, their successors or assigns, together with other parties who had lands subject to irrigation from said system, and who desired

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to unite with the parties to said contract in the irrigation of their lands by said system, shall and will form a mutual water corporation for the irrigation of their said lands, to which mutual water corporation said irrigation system shall be conveyed free of encumbrances. It was further agreed that the respondents would thereupon convey to the appellants stock in said mutual water corporation to the extent of the acreage demised, fully paid up, without cost or expense to said appellants. In consideration of the construction of said irrigation system, the appellants agreed to convey to the respondents certain lands consisting of eight hundred acres, other than the lands leased in the contract. On the fourteenth day of January, 1917, the respondents, in pursuance of said lease, or contract, dated November 15, 1916, and in consideration of the conveyance by appellants to respondents of the eight hundred acres of land as provided in said contract, by an instrument in writing purported to grant, convey, assign, and set over to the appellants, free and clear of debts or charges, the right and title in and to the irrigation system, irrigation plant, and property therein described, in such proportion of interest therein to the same extent as the lands of appellants, which were described in said lease of November 15, 1916, bore to the whole acreage irrigated by said system prior to December 31, 1918, the date of the expiration of said lease, and providing further that upon the organization of a mutual water corporation there should be issued to appellants stock in such corporation to the extent of one share for each acre of land described in said agreement, fully paid up, without cost or expense to appellants. On the twenty-first day of November, 1918, the appellants and respondents entered into another agreement in writing, modifying the lease and agreement of November 15, 1916, in that it was agreed that an irrigation district should be formed comprising the lands of appellants and other lands within the irrigation system in lieu of the mutual water corporation provided for in the agreement dated November 15, 1916, and providing further that said irrigation district should be formed within one year and should acquire by purchase the irrigation system constructed by the respondents, that the appellants should receive an amount of bonds of said district which should bear the same ratio to the entire amount of bonds received for the irrigation