Flick v. Hahn's Peak & Elk River Canal & Placer Mining Co.
Flick v. Hahn's Peak & Elk River Canal & Placer Mining Co.
Opinion of the Court
Plaintiff Flick seeks by this suit to foreclose a mechanic’s lien claimed on account of work and labor done by him for the repairing, enlargement and completion of certain ditches owned by the defendant company, and used by it for the
“ This agreement made and entered into, * * * witnesseth:
“ That whereas the said party of the first part is the owner of those two (2) certain ditches in Routt county, Colorado, known as the Elk River ditch, which extends from a branch of the Elk River in a southwesterly direction for a distance of about twenty-one (21) miles to the town of Hahn’s Peak, and the Willow Creek ditch, which when completed, will extend from the west or main branch of the Willow Creek in a southeasterly direction for a distance of about four (4) miles to Nugget cut, a few hundred feet above said town; and
“ Whereas the said party of the first part desires the said Willow Creek ditch to be completed, and the said Elk River ditch to be repaired, improved and enlarged,
“ Now therefore, * * * (Here follows a number of specifications of the work, as to the size of the ditch, flume, etc.) A good durable, strong flume, of sufficient size to carry the waters of said ditch as enlarged, shall be constructed by said Flick around Sand Rock point, about two and one half (2½) miles below the headgate of said ditch; that said flume shall be so thoroughly and strongly anchored that it will remain in its position of construction permanently. The headgate of said ditch shall be constructed of substantial material and the dam or bulkhead across the creek, just below the head of said ditch, shall be constructed of substantial and permanent materials, so that the same will, at all times, cause sufficient amount of the waters of said Elk river to flow into said ditch to fill the same. * * * All of said work shall be completed on or before the 15th day of August, A. D. 1897, and on completion thereof, water shall be turned into the same at the headgate, and the said Flick guarantees that a full head of water shall -flow through the said ditch for its entire length for a period of thirty (30) days immediately*488 after its completion. It is expressly understood that a full head of water in said ditch shall mean a volume of water six (6) feet wide on top, three and one half (3-)) on the bottom, and three (3) feet deep.”
Three several cash payments were required to be made to plaintiff, the last of which was on the 1st day of October, 1897, and the contract then provided further:
“ On the last aforesaid date, in addition to the aforesaid payments, said party of the first part agrees to make, execute and deliver unto said party of the second part its conditional note, payable in one (1) year after its date, in the sum of twenty-one hundred seventy-five ($2175,) dollars, secured by seventeen thousand four hundred (17,400) shares of the capital stock of said company, with the condition that if the said note shall not be paid on or before its maturity, the said stock shall be taken and received by the said party of the second part in full payment of said note.
“ H is further agreed between the parties hereto that said first payment shall be limited to seventy-five (75) per cent of the value of all work done at that time, and the said second payment shall be made upon the completion of all the said work by said Flick and the acceptance of the same by George B. McFadden, it being the intention that said Flick upon the completion of said work, shall have received the total sum of five thousand ($5,000) dollars, and that no further payment shall be made to said Flick until after he shall have caused a full head of water to flow through said ditch for a period of thirty (30) consecutive days.”
It is conceded that the plaintiff did not cause a full head of water as described in the contract to flow through this ditch for a period of thirty days, or for any time, after its completion, and for this reason the defendant contends that the plaintiff, having wholly failed to comply with his contract, forfeited all right to recover any further payments which had been provided for. In other words, defendant insists that the principal object of the contract was to secure the specified amount of water, and that the plaintiff bound himself to
In our view, the contract is clear and specific, and sustains the position taken by the plaintiff as to the object, purpose and intent of the parties. The exclusive subject-matter of the contract was the enlargement, cleaning out, repairing, etc., of the ditches according to the specifications furnished by the chief engineer of the company. In no place is anything said about any obligation on the part of the plaintiff to furnish any water at all, nor can any such obligation be implied from anything said in the contract. The contrary clearly appears. The ditch was to convey water from Elk river. At this stream the headgate was to be placed, and the only reasonable construction of the provision requiring the plaintiff to turn in a certain amount of water of Elk river at the head-gate upon completion of the ditch, was to test the ditch in
Construing the contract as we do, and holding as we do that its purpose, object and intent can be clearly ascertained from its express terms, it necessarily follows that the court erred in admitting testimony on the part of the defendant as to conversations and negotiations between the parties, prior and leading up to the execution of the contract, tending to contradict or vary the terms of the contract as we construe it. The contract not being doubtful in its terms or provisions, it is conclusively presumed that all prior negotiations were merged in the written contract. Carr v. Schafer, 15 Colo. 48; Dawson v. Woodhams, 11 Colo. App. 394; Johnson v. Cummings, 12 Colo. App. 17.
“ That of the amount reserved by said contract after the payment of five thousand dollars, the sum of twentjr-one hundred and seventy-five dollars was payable in stock of said defendant, and not otherwise, except at the option of defendant.” We think the objection was well taken. The provision of the contract with. reference to the payment of this amount, was that on the 1st day of October, 1897, after making all previous payments in cash, the defendant was to make and deliver unto the plaintiff its conditional note, payable in one year after its date, for the sum of $2,175, to be secured by 17,400 shares of the capital stock of the company, with the condition that if the said note should not be paid on or before its maturity, the stock should be taken and received by the party of the second part in full payment of the note. Before the defendant could have or exercise any option to pay this amount in stock, it was necessary for it first to have on the date specified, executed and delivered to plaintiff its promissory note for the same, and have also delivered to him the stock to secure its payment. The obligation was on defendant to do these things before any option to pay in stock could exist, and not upon the plaintiff to demand it. The defendant did not comply with this obligation, and hence, no option to pay in stock arose in its favor, and the plaintiff was entitled to recover the amount in money. Brown v. Foster, 51 Pa. St. 165; O'Connor v. Dingley, 26 Cal. 1; Ry. Co. v. Marlor, 123 U. S. 687 ; Brown v. Dobson, 48 Atl. Rep. (Pa.) 415.
About $1,500 of the amount for which plaintiff claimed judgment, was for extra work. It was not disputed that all of this extra work was done by the plaintiff, nor that it was done by the express direction, authority and consent of two of the five directors of the defendant company, one of whom was named in the contract as the engineer who was to supervise all the work, who prepared all plans and specifications for it, and who was to accept the same when completed, When all of this extra work was completed, these two direct
The judgment will be reversed.
Reversed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.