Denver-Laramie Realty Co. v. Wyoming Trout & Produce Co.

• Citation: 219 F. 155
• Decision Date: 04 January 1915
• Docket Number: 4055.
• Parties: DENVER-LARAMIE REALTY CO. v. WYOMING TROUT & PRODUCE CO. [1]
• Court: United States Courts of Appeals. United States Court of Appeals (8th Circuit)

219 F. 155

DENVER-LARAMIE REALTY CO. v. WYOMING TROUT & PRODUCE CO. ^[1]

No. 4055.

United States Court of Appeals, Eighth Circuit.

January 4, 1915

N. E Corthell, of Laramie, Wyo., for plaintiff in error.

C. P Arnold, of Laramie, Wyo., and Sheridan Downey, of Sacramento Cal., for defendant in error.

Before CARLAND, Circuit Judge, and T. C. MUNGER and YOUMANS District judges.

CARLAND Circuit Judge.

This is an action by the Wyoming Trout & Produce Company, hereinafter called the produce company, to recover damages for breach of contract from the Denver-Laramie Realty Company, hereinafter called the realty company. A judgment for $17,000 was recovered in the court below. The realty company complains of certain rulings of the trial court. In order to more clearly understand the position of the parties at the trial, a brief statement of some of the surrounding circumstances as they appear in the record is necessary.

In November, 1909, the Wyoming Trout Company, hereinafter called the trout company, was organized as a corporation under the laws of Wyoming, for the purpose of spawning, hatching, and maturing trout in the county of Albany, Wyo., and selling the said trout and the eggs and fry thereof. For the purpose of commencing and carrying on its business, it made a contract with the Willow Creek Ranch Company, whereby the ranch company granted to the trout company the right to use and possess for 99 years a certain site owned by the ranch company for the culture of trout in return for a certain amount of the net profits of the business. The trout company, relying on the contract, erected a fish hatchery with troughs and a syphon, for the purpose of conducting water through said building. It also erected an icehouse and other buildings on the land and site mentioned, and constructed thereupon ditches, ponds, dams, and reservoirs such as were necessary and convenient for the culture of trout and the marketing thereof.

One Sheridan Downey was the president of the trout company. On June 4, 1910, Downey, having an option to purchase the Willow Creek ranch, entered into a contract in writing with the realty company for the sale thereof. The ranch consisted of 14,150 acres, for which the realty company agreed to pay $5.15 per acre. The fish hatchery, hereinbefore mentioned, was located upon a portion of the ranch. On June 30, 1910, Downey, for the sole use and benefit of the realty company, entered into a supplemental contract with the ranch company for the purchase of the Willow Creek ranch. In said contract it was provided, among other things, as follows:

'And it is further agreed by the said ranch company that it will keep and maintain all of its present state leases on the lands hereinbefore set out until November 1, 1911, paying all charges on same until said date, when it shall assign, without further charge, each and all of same, together with all improvements thereon, to said Downey, with this exception: That the state leases on the northeast quarter of the northwest quarter, northwest quarter of northeast quarter, and southwest quarter of northeast quarter of section four (4), township thirteen (13) north, of range 73 W., shall be assigned at any time after date hereof to said Downey in his personal capacity.'

July 1 1910, Downey, in consideration of the sum of $1 and other lawful considerations, sold, assigned, and transferred to the trout company all his right, title, and interest in and to the contracts of June 4, and 30, 1910, including the right to the assignment of 120 acres of land in section 4, township 13, range 73, mentioned in the contract of June 30, 1910. January 24, 1911, the produce company was organized, with Downey as president and general manager. February, 1911, the trout company, in consideration of the sum of $17,700, sold, assigned, and transferred to the produce company all its real and personal property, accounts, rights, and contracts of whatsoever kind and nature. The present action was commenced by the produce company as the successor in interest of Downey and the...