The record-union., 1891-02-02

II. NJ. Willis.
DEPARTMENT TWO.
ID. Il. WILLIAMS, Respondent,
VS..
MITCHELL, HOPES AND No. Il, 762
RHODES, Appellants.
On June IL, 1887, the plaintiff sold and
conveyed to the defendants six lots of
land containing twenty acres each, and
at the same time assigned to the defend
ants certain written obligations of the
Bear Valley Land and Water Company
Ia corporation, to furnish and deliver at
certain point, a certain quantity of
water to be used on each OF said lots,
called water certificates The con-
sideration to be paid by the defendants
Tor the land and water certificates was
50, 600, of which $1,000 was paid in
hand. For the balance of the purchase
money the defendants made two promis-
sorry notes to the plaintiff of 5000 each,
secured by their mortgage on said land
This action is brought to foreclose the
mortgage.
The answer of the defendants admits
the execution of the notes and mortgage,
and then proceeds as follows:
THAT said notes and mortgage were
executed and delivered as and for part of
the purchase money of said real estate in
complaint described, together with GER
tam water rights by plaintiff represented
as appurtenGnt thereto, as well as for GER
tain shares of stock in the Bear Valley
Land and Water Company, corpora
ton organized and existing under the
laws of the State OF California, and for no
other or further consideration.
III.
''That said defendants were induced to
so purchase said lands and stock and to
| execute and deliver said notes and mort
gage by means of false and fraudulent
representations at the time and before
that time made by plaintiff to defendants
| in this, to wit: That at and before the
purchase of said real estate, appurte-
| nances and shares Of stock, the said
plaintiff, by and through his duly au-
thor1zed agent, represented to defendants
that water for irrigation purposes was
actually piped on said land from the
reservoirs of said Bear Valley
Land and Water Company; that
the right to use twelve miners
inches of said water was appurtenant to
said land; that plaintiff would transfer
and deliver to defendants shares of stock
in said Bear Valley Land and Water
Company. representing ownership of
twelve miners inches Of water of
said corporation; that plaintiff owned
the land lying Immediately adjacent
to the premises i'll complaint
described; that upon said lands
| plaintiff would at once cause to be con-
structed large hotel building at cost of
$4,000, and numerous private dwellings,;
that the materials to be used in their
construction were already purchased by
| plaintiff and the contract for the erection
! thereof let.
Defendants relying upon such repre-
sensations and believing them to be true,
and on the faith thereof purchased said
| premises in complaint described. and
| said stock of plaintiff, and on the 18th of
OF June, 1881, accepted from plaintiff a
| deed therefor, with six certain instru-
nents i'll writing, issued under the seal of
said Bear Valley Land and Water Com
pany and signed by its President and
Secretary, denominated water certificates,
and in consideration thereof paid to
| plaintiff six thousand dollars in cash and
executed the notes and mortgage as in
complaint set out and described.
''That at the date of the acceptance of
said deed and said water certificates
defendants believed that said water
certificates were in fact shares of
| stock in said corporation and
entitled the defendants, as holders
thereof, to the rights and privileges of
| stockholders in said corporation, and
conveyed to defendants the rights and
privileges so contracted to be conveyed
and transferred by plaintiff, to twelve
miners inches of water OF said corpora
ton.
Defendants allege that notwithstand-
ing said promises and representations of
plaintiff that neither at the time of said
purchase, or now, or at any time or at ALL
was any water piped on said land from
the reservoir of said Bear Valley Land
and Water Company, nor from any
water supply or source, and no pipes for
conveying water were laid on said land
at all, nor in the vicinity thereof.
VII.
"That in truth and in fact no water
rights were appurtenant to said lands,
and no hotel building or private dwell
ings or structures of any Kind have been
erected on said adjacent lands, in whole
or iii part, except certain excavation
alleged to be for a basement for q hotel,
although more than one year has elapsed
since said purchase, and no steps have
been taken by plaintiff to cause said i'm
provements, or any OF them, to be made
on said adjacent lands, although he has
ever since remained and still remains the
owner and holder thereof.
VIII.
THAT said lands were at the date of
and without water rights appurtenant, or
water for use in irrigation, are of little
value and worth less than 5000; that
water rights appurtenant to such lands,
for purposes of irrigation, would be
valuable and worth $1,000 and more; that
shares of stock in said Bear Valley Land
and Water Company, representing twelve
| miners inches of water, would be of
great value, to wit: of the value of S., 900
and more: that the erection and construc-
ton of said hotel buildings and private
dwellings as agreed upon would enhance
the value of said premises $4,000 and
more; that without said improvements
on said lands adjacent, the premises so
purchased by defendants are worth
$4,000 less than with such improvements
made as represented.
TX.
Defendants are informed and believe
and therefore allege the fact to be that
said written instruments styled water
certificates issued by said corporation to
defendants were and are issued without
| authority of law and are void; that said
corporation had no authority in law to
issue the same and the issuance of the
same conveyed and transferred no rights
| as stockholders or otherwise to defend
ants; that the same are not shares of stock
and do not transfer or vest in the defend
ants the privileges or rights of stockhold-
ers, and do not convey or vest in defend
ants twelve miners inches OF water of
said corporation or any water or rights
whatsoever, and the same are of no value,
and defendants allegc that they were ig-
| norant of the true character and value OF
said written instruments styled water
certificates until the commencement of
| this action, and defendants further al
| lege that plaintiff never transferred, con-
veyed, or attempted to convey to said
| defendants any of said water rights or
shares of stock in said Bear Valley Land