Russell & Co. S. en C. v. Henna
Russell & Co. S. en C. v. Henna
Opinion of the Court
delivered tbe following opinion:
1. Upon tbe argument, attention was called to tbe fact that tbe circuit court of appeals, while not determining tbe questions involved, during its opinion seemed inclined to construe, tbe words of tbe contract in a certain manner. There are only two ways of looking at this. If tbe circuit court of appeals considered that it bad enough of tbe case before it to -justify tbe construction of tbe contract in any particular way, that construction would be binding upon tbe court below and would of course be followed. In tbe case at bar, however, this does not seem to be tbe case. Tbe court above recognized that tbe contract could only be construed in tbe light of the circumstances under which it was executed and contemporaneous construction of tbe parties themselves, and these were not before that court, but wore expressly left to be adjudicated by tbe district court. Whatever tbe circuit court of appeals said, therefore, is to be considered merely as arguendo, and not as binding or intended to be binding upon this court.
2. When tbe case was before tbe court on tbe application fox preliminary injunction, attention was attracted by tbe provision in tbe contract that tbe insular government reserved tbe right to develop tbe lower part of tbe Jacaguas river. It was
3. The decision of the case will depend upon the proper construction more particularly of the contract set out by the plaintiff in his bill. Upon the trial he sought to bring out evidence of negotiations between his predecessor and the Irrigation Department of the insular government, with a view to throwing light upon the contract. The general'principle is that a written contract stands or falls by itself. It may be varied by parol, but in such case it becomes a new contract. Glover v. McGilvray, 63 Ala. 508. It cannot be varied in any material part by parol testimony. Bank of Mobile v. Mobile & O. R. Co. 69 Ala. 306. It used to be expressed that, where there is latent ambiguity in a contract, the circumstances under which it was made can be received in order to explain. The modern rule ha¡s been expressed more broadly to be that attending facts and circumstances connected with a contract may be shown in order to aid in its construction, but that this does not go so far as to authorize evidence of intention. Humes v. Bernstein, 12 Ala.
Accordingly upon the trial it was held that negotiations between the plaintiff’s predecessor and the Irrigation Department could not be shown, and that this was particularly true as to their intentions. On the other hand, the fullest scope was allowed to evidence showing their situation before the contract was made, with a view of developing what was the motive and intention of the parties in making the contract. No reason is shown to change this view.
4. The first question coming up in all Porto Rican cases is as to the law controlling. The United States have recognized local water rules and customs. Revised Stat. § 2339, Comp. Stat. 1916, § 4647. It is well recognized that a state can divert even navigable waters for irrigation or other purposes at its will,
The local law in Porto Bico, therefore, is what is called the Law of Waters, coming down from Spanish times. This is the law of 1866, but the provisions as to irrigation go back to the times of the Moors in Spain. The law covering the present day water rights connected with the insular irrigation system is found in the Acts of 1908 and 1913, whose provisions must be carefully considered. Acts Extraordinary Session 1913, No. 128, page 54.
This is a careful act of thirty-seven sections, providing for a commission to fix irrigation districts, in which the commisson shall acquire the water rights outstanding, agreeing to deliver to the concessionaire the fair equivalent in value in acre feet per annum reasonably distributed through the year. There was to be first a provisional arrangement, and afterwards permanent irrigation districts, -the commission giving due consideration to all water rights or concessions and to the results and effects of
The contract in question is one made by the Commissioner of the Interior under § 13 of this act; and its wording, found in the statement of facts, is therefore important. Acts Extraordinary Sessions 1913, p. 72. It must be construed in connection with the provisions in the Law of Waters that “authority is necessary for use of public waters especially destined to enterprises of public or private interests” (art. 147) ; and “in any event when a public investigation is made with respect to any grant of waters, the holder of such rights shall be obliged to establish them in the manner and at the- time prescribed by the regulations.” Art. 148. “He who shall have enjoyed the use of public waters for a period of twenty years without the ■opposition on the part of the authorities or a third person shall continue-to enjoy it even though he cannot prove that he has obtáined the proper authority.” Art. 149. It has been -held that prescription as to waters, twenty years, may be set up as to the right, but that this does not carry with it any specific quantity unless that be otherwise proved. Trujillo v. Rodriguez, 22 P. R. R. 280; s. c. 147 C. C. A. 214, 233 Fed. 208. There are definite requirements in connection with public grants, but no question is made as to the right of the plaintiff under his concessions.
But it is the additional water that is in question in this case, that is to «ay, that which according to the contract is granted. While the contract may be a regulation, and to some extent a regulation of the-use of water already owned, it embraces the additional element of regularity of supply, and it is difficult to see how, made as it is between the government and an individual, it can be construed otherwise than upon the principle .of
6. Tbe contract in question relates to concession water of certain specified quantities, and also in addition to take “by pump at tbe said Aruz pumping station water wbicb may be available there for tbe irrigation of any of its said lands to tbe extent that such taking shall not deprive any owners or users of subsisting water rights or concessions.” This does not use tbe word “excess” or “surplus,” but it would seem to be the same thing as excess or surplus waters, for it is what remains after other rights have been satisfied. Surplus water has been defined as that remaining after prior rights are complied with. Gutierres v. Albuquerque Land & Irrig. Co. 188 U. S. 545, 556, 47 L. ed. 588, 593, 23 Sup. Ct. Rep. 338. It would seem to come under § 14 (§ 3) of the act as amended, to the effect “that the Commissioner of the Interior under such rules and regulations as may be established by the Executive Council may sell or lease water controlled by the irrigation service and in excess of the water required by law on the lands . • . . for the irrigation of lands either within or without the . . district . . . and the proceeds of such sales or leases shall be applied to the decrease of annual assessments.” (Page 81.) No such rules and regulations are in evidence, but, as the Executive Council approved the contract in question, it may be supposed that these were complied with.
The contract between the plaintiff and the people of Porto Rico is mutual, that is to say, Eortuna gives up temporarily the exercise of its concession rights, and the consideration there
7. On the other hand, the defendants’ right based upon a contract of June 28, 1917, has, so far as appears upon its face, no relation whatever to any concession. It is true Boca Chica enjoyed a concession from the Spanish government, but it was secondary to Fortuna’s concession and of less value because its water was to be cut off sooner than that of Fortuna. Defendants’ contract is 'therefore not based upon this concession, but amounts purely and simply to a purchase qf so much surplus
The words, “available there,” must have some meaning. If Porto Pico can take away with one hand what it gives with the other it will be making a one-sided contract, which it has forbidden its citizens to make, and will be violating the obligation of its own prior contract.
P. R. Civ. Code § 1223. “The validity and fulfilment of contracts cannot be left to the will of one of the contracting parties.”
P. R. Civ. Code § 1241. “In contracts, involving a valuable consideration, the prestation or promise of a thing or services by the other party is understood as a consideration for each
If the contention of the defendants is correct, the irrigation authorities could build a high dam immediately above the Aruz pump and sell all the water to other parties, or could build a wall around the Aruz pump and conduct the water lower down for sale to yet other persons. The Fortuna contract cannot have any such meaning as this, for the result would be that the words in question would have no meaning whatever which the defendants are bound to respect. It is quite true, that the Fortuna “taking shall not deprive any owners or users of subsisting water rights or concessions of the water to which such owners or users may be entitled, either by virtue of such water rights or concessions or by virtue of any agreement or agreements in regard thereto entered into or to be entered into by them with the people of Porto Rico;” but the right of Boca Chica in this cause is not by virtue of any such water right or concession, and does not come under this exception. The Boca Chica right was merely that for the purchase of surplus water under § 33 of the Irrigation- Act, and as the irrigation service had already disposed of the water in question to Fortuna, there was no surplus water left to be sold.
It. follows, therefore, that the plaintiff is entitled to relief, and a permanent injunction will issue against defendants as prayed in the bill.
It is so ordered.
Reference
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- RUSSELL & COMPANY S. EN C. v. HENNA
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