Idaho Fruit Land Co. v. Great Western Beet Sugar Co.

Citations

• 17 Idaho 273
• 105 P. 562
• 1909 Ida. LEXIS 105

Syllabus

<p>Beceiver — Jurisdiction to Appoint — Irrigation. Corporations — Foreign Corporation.</p> <p>1. Where a plaintiff alleges that it has acquired an interest in an irrigation system by the purchase of water rights therein, and the irrigation company owning such system becomes insolvent and is unable to protect and care for its property and comply with its contracts with the plaintiff to furnish water, the district court or the judge thereof has power and jurisdiction to appoint a receiver for such irrigation company to preserve and care for and operate its property pending the litigation as to the plaintiff’s interest in said property.</p> <p>2. Where a foreign corporation appropriates water for sale, rental or distribution, and builds a system for the purpose of selling, renting and distributing such water, the right to collect rental or compensation, for the use of water supplied by such system, is a franchise; and where such corporation leases such system to another corporation engaged in the appropriation and distribution of water for rental and sale, and the latter corporation becomes insolvent and permits the system to become in disrepair and unfit to be used in the distribution of such water, the court has jurisdiction and power to appoint a receiver of the entire property of both corporations, pending litigation to determine the interest a purchaser of water may have acquired in such system.</p> <p>3. Upon an application for the appointment of a receiver of a foreign corporation, where the title and possession of such corporation to property is attacked, it is error for the trial court to refuse to consider the answer of sueh foreign corporation, on the ground that it has failed to comply with the laws of this state regulating foreign corporations doing business within the state.</p> <p>(Syllabus by the court.)</p>