Twin City Power Co. v. Barrett

Citations

• 126 F. 302
• 61 C.C.A. 288
• 1903 U.S. App. LEXIS 4313

Syllabus

<p>1. Equity Jurisdiction — Adequate Remedy at Law.</p> <p>Complainant, who had secured options on lands adjoining a river for the purpose of developing a water power, transferred them to others, who were securing lands for the same purpose, under a contract by which such persons were to organize a corporation to complete-the work and to deliver to complainant in payment a certain amount in its bonds by a date fixed, or in default to return the options; the issue of bonds not to exceed a certain per cent, of the amount expended in the improvement. The bonds not having been delivered, and a demand for the return of the options having been refused, a short time before the options were about to expire complainant filed his bill asking the appointment of a receiver to complete the purchases thereunder for his protection, alleging the insolvency of the corporation to which the options had been assigned. Eeld, that the bill presented a case within the jurisdiction of a court of equity, and that, having obtained jurisdiction for one purpose, it was properly retained to grant full relief.</p> <p>3. Contracts — Performance.</p> <p>Complainant transferred options to buy land to certain of the defendants under a contract which provided that he should receive a cash payment, and also bonds of a corporation to be organized by such defendants to take and improve the property, the bonds to be secured by a first mortgage, and the issue not to exceed 80 per cent, of the amount invested in the property. Failing to deliver the bonds, defendants were to pay the amount in cash, or, in default of that, to return the options and forfeit the payment made, settlement to be made by a certain date, and time being made of the essence of the contract. At the expiration of the time the corporation had been organized, but had not completed the purchase of the lands nor issued any bonds. A demand for the cash payment or the return of the options was refused. Eeld, that a delivery or tender to comp