187 Iowa 423 | Iowa | 1919
The issues may be more easily stated and understood if preceded by a brief statement of a few of the more important facts. A corporation known as the Antero
In June, 1909, plaintiff and her husband, and a real estate man and his wife by the name of Martin, all of whom resided in Omaha, Nebraska, went to Denver, and, in pursuance of previous arrangements made with one Ivynnett, an employee of defendant Annis & Rohling, all of whom resided at Council Bluffs, Iowa, met the defendant Annis at the Albany Hotel in Denver. Before going to Denver, plaintiff deposited $400 with Kynnett as an advance payment upon a tract of land located within the boundaries of the proposed irrigation district. Upon arrival at Denver, plaintiff learned that the tract she had intended buying had already been sold. The above-named parties, with defendant Annis, went from Denver in an automobile to look at the west one half of Section 21 and the southeast quarter of Section 29, Township 2, Range 65, Adams County, Colorado, which plaintiff subsequently purchased, and which forms the subject-matter of this controversy. The consideration paid for this land was
On July 16, 3914, plaintiff commenced an action allow against the defendants for damages, alleging in her petition, in substance, that defendant Annis falsely represented that all of the above-described tract would be irrigated by the extension of the High-Line Canal, owned by the Antero Land & Irrigation Company, of which he was a stockholder and officer. In this action she demanded judgment for $3,000, with interest thereon at 6 per cent from July 17, 1909. On November 12th following, plaintiff filed an amended and substituted petition in equity, tendering a reconveyance of the lands to defendant, asking a cancellation and rescission of the contract, and demanding. judgment for the consideration paid, with interest.
The grounds stated in her amended and substituted petition, upon which she bases a right of rescission, were, in substance, that the defendant Annis represented to her that the defendant partnership owned certain agricultural lands in a proposed irrigation district comprising 60,000 acres, located near the city of Denver; that the Antero Reservoir, which would have an available annual storage water supply for irrigation purposes of about 85,000 acre feet, was in course of completion; that the High-Line Canal, with an available flow of approximately 1,200 second feet of water, had long since been constructed; and would be extended so as to furnish water for the tract purchased; that all of the water of said reservoir and more than one half of the supply of said canal would be annually available for irrigating the land in said proposed district; that the supply of water would be more than ample
Defendants, for answer, admitted the copartnership and many other allegations of plaintiff’s petition not neces
Many of the following matters are admitted of record, or were established without substantial dispute, to wit: That an election was held on the second day of September, 1909, by the resident electors of the proposed irrigation district, to vote upon the question of forming an irrigation district, and that the proposition was defeated;
Going now to a statement of the evidence of the respective parties concerning the purchase of the land in controversy, we find them in substantial harmony as to much that was said and done by them. So far as -the record shows, all of the negotiations were conducted on behalf of the defendants by A. D. Annis, and on behalf of the plaintiff by her husband, who is a physician, located in the city of Omaha. It is admitted by plaintiff that Annis showed to the parties heretofore named the land purchased, and pointed out with his hand where the High-Line Canal was to be constructed; that the land was somewhat rolling; that there was nothing on the ground to indicate the exact location or course of the canal; that no laterals or ditches had been constructed; that they later several times crossed the High-Line Canal on their return to Denver, and upon a trip to Colorado Springs, and that Annis called attention thereto; that he offered to take plaintiff and party to see the Antero Reservoir, then in process of construction; that she knew it was proposed to organize an irrigation district and issue bonds which would be a lien on the land to the extent of $50 per acre: but she claims that Annis represented to her that the water supply would be at all times abundant and sufficient for the production of crops; that all of the land would be irrigated; and that these statements were made as of his personal knowledge. Annis, however, claims that, after pointing out with his hand where he understood the extension of the High-Line Canal would be located, he informed plaintiff that the 480-acre tract was all within the boundaries of the proposed district; that the Antero Reservoir was in process of completion, and would have a storage capacity as above stated; that there was an adjudicated priority in favor of the canal of approximately
The principal conflict in the evidence, it will thus be seen, relates to the alleged representations as to the sufficiency of the water supply, and the susceptibility to irrigation of each acre of the tract purchased.
The Antero reservoir was later completed, with a capacity of 85,600 acre feet; and it is conceded that a decree of the district court was entered in 1879, fixing the priorities of the High-Line Canal as 1,184 second feet of water.
It is the claim of appellant: (a) That all the alleged statements and representations of the defendant were matters of opinion only; (b) that plaintiff’s cause of action is. barred by the statute of limitations; (c) that she failed to prosecute her claim with diligence, and did not bring her suit to rescind within a reasonable time after discovering the alleged fraud; (d) that she is estopped to claim rescission of the contract because of her election to affirm the same by the commencement of an action for damages.
I. In view of the conclusion reached by the court in this case, it is important at the outset to decide: (a) What, if any, of the representations claimed to have been made by the defendant Annis to plaintiff and her representative, upon which she relied in purchasing the land, were false? (b) Did Annis know, at the time-the representations were made, that any or all of them were false? (c) If the falsity thereof was not known to him, were they
It is admitted of record that 104 acres of the tract purchased, on account of its elevation, could not he irrigated by the proposed system, and it appears without conflict in the evidence that the plaintiff knew this fact as early as November, 1913, several months before the action at law for damages was commenced. The only other representation relied upon by plaintiff, as we understand counsel for appellee, is that there would, at all times, be an abundance of water distributed upon the land for the production of all kinds of agricultural crops.
On behalf of appellant, it is strenuously insisted that all of the alleged representations as to the water supply were mere expressions of opinion, and that same must have been so received and understood by plaintiff. Plaintiff must have understood that the purpose of constructing reservoirs was to provide storage for water, and that the water supply necessarily depended upon the accumulation of snow in the mountains, the quantity of which is notoriously variable.
Defendant, according to the undisputed evidence, explained to plaintiff that the water would be conveyed to the land in the East Denver Suburban Irrigation District through an extension of the High-Line Canal, and that the extension had yet to be constructed; that the Antero reservoir was in the neighborhood of 150 miles distant; and that approximately one half of the adjudicated priority of 1,184 feet would be used to irrigate lands for which prior rights existed.
There is some dispute in the evidence as to whether the capacity of the High-Line Canal will enable it to carry sufficient water to irrigate the lands in question, but the proposed system contemplated the enlargement and repair of the canal, and the .construction of three distributing res
It is also claimed by counsel for appellee, and evidence was offered to sustain this contention, that the predecessor of the Land & Irrigation Company, to the rights of which it succeeded, lost its right to approximately one half of its adjudicated priority of 1,184 second feet by non-use, and that, therefore, practically none of the water supply to which the Land & Irrigation Company is entitled will be available for irrigating .the lands in question. The evidence upon many of these questions is in direct conflict. An engineer of considerable experience in irrigation matters, and apparently well informed as to conditions affecting the water supply available for storage in the 'Antero reservoir and that may be diverted through the High-Line Canal, expressed the opinion that sufficient water could not be obtained for the irrigation of the land in the new district. The testimony of this witness was based in part upon records, the correctness of which is challenged by defendant. Witnesses of apparently equal capacity and information called by the defendant expressed a contrary opinion.
“This proceeding by appellee, as petitioner below, was under ‘an act in relation to irrigation’ (Session Laws 1899, p. 235), and the object was to obtain a decree permitting a change of the point of diversion of 'the right to the use of water for irrigation originally decreed to the Frederick Bros.’ Ditch, which is situate in water district No. 2, and now owned by petitioner, to the head gate of the Bijou ditch, also owned by petitioner, and situate in water district No. 1. The cause was referred to a referee to take evidence and make findings of fact and report a decree, The court, with some modifications and corrections, approved of the referee’s findings, and entered a decree in favor of the petitioner as prayed for. Some of the respondents appealed, and rely for reversal upon four grounds: (1) That the priority in question had been totally abandoned prior to its acquisition by the petitioner; (2) that a partial abandonment thereof occurred; (3) that the change, if allowed, would injuriously affect the vested rights of the respondents; (4) that the district court was without jurisdiction of the subject-matter of the petition. The first two contentions are at rest fn this jurisdiction.
See, also, Wadsworth Ditch Co. v. Brown, 39 Colo. 57 (88 Pac. 1060); Rogers v. Nevada Canal Co., 60 Colo. 59 (151 Pac. 923); Arnold v. Roup, 61 Colo. 316 (157 Pac. 206).
The evidence further discloses, without conflict, that, while on the land, defendant attempted to point out the proposed location of the extension of the High-Line Canal; that, in 1911, defendant and Dr. Ellis were again upon the land, at which time a furrow marking the location of the canal had been run. At the time of the first visit, no survey had been made, and there was nothing to indicate the exact place where the canal would be located. The land was rolling, and it is quite manifest, from the description, that no one could determine positively, without an appropriate survey, whether all of the land would be irrigated or not.
Plaintiff commenced her action for damages with full knowledge that at least 104 acres of the tract purchased could not be irrigated. This constitutes the only ground upon which a right of rescission existed. The commencement of an action at law, with full knowledge of the alleged fraud, was a conclusive election to affirm the con-, tract and claim damages, and estopped the plaintiff from
Before she left for Denver, plaintiff had formed some
Correspondence introduced in evidence between plaintiff and persons in Denver indicates that she kept in close touch with the steps being taken to complete the system and provide irrigation for the land. The East Denver
There is nothing in the record to indicate that defendant sought to conceal any information known to him, concerning the land purchased, and the contemplated scheme for irrigating same, or that he did anything to either induce plaintiff to forego investigation or to prevent her from
V. Many questions discussed by counsel have not been given detailed consideration in this opinion, but they have all been carefully considered. While some of them may have controlling importance, our conclusion thereon would not cause us to reach a different result, ánd to properly discuss the same would unduly extend this opinion, — already too long. We have had the benefit of exhaustive briefs of counsel, and have given all questions presented the consid