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proving the land, and, defendant having failed to make the improvements, plaintiff was entitled to rescind the contract.

2. The agreement of defendant to make the improvements, and to plat the land, and lay out and grade streets, was a condition precedent, and performance thereof was necessary to entitle it to specific performance by plaintiff.

3. The agreement to survey and plat the land was not performed by a survey in which the lots crossed the lines, overlapping with land owned by defendant on each side of the land in question.

4. Defendant having failed to perform the conditions, plaintiff was not limited to an action on the bond for damages, but could rescind the contract, and sue to cancel his deed to defendant, and recover the land.

Appeal from district court, El Paso county.

Suit by James Boyes and others against the Green Mountain Falls Town & Improvement Company to rescind a contract for the sale of land, and cancel a deed. There was a decree for defendant, dismissing the suit, and plaintiffs appeal. Reversed.

The other facts fully appear in the folowing statement by REED, J.:

tain Falls Town and Improvement Com pany. F. E. Dow, President. I. J. Woodworth, as Secretary.

"The condition of the above obligation is such that, whereas, the said James Boyes has executed a warranty deed, running to the said Green Mountain Falls Town and Improvement Company, of the following property, to wit:

Now, therefore, if said company shall survey, grade, and improve the streets on said lands, make other valuable improvements thereon, and commence within thirty days of the date hereof to survey into lots, and plat said lands, or so much thereof as said company may deem practi cable, and deed to said Boyes one-tenth of said lots so platted, to be divided as follows, to wit: Said Boyes to draw one of said lots, and said company to draw nine of said lots; said drawing to be continued until all of said lots platted are drawn; also to pay said Boyes one-tenth of the net proceeds from the sale of said lands not surveyed and platted by said company, and to allow him, the said Boyes, to retain the house now occupied by him, then this obligation to be null and void; otherwise, of full force and effect. It is distinctly understood and agreed by said Boyes that the penalty and conditions of the above obligations are subject to the validity and sufficiency of the above warranty deed above referred to. Signed, sealed, and delivered in the presence of S. P. Madiera. [Seal.] J. H. Bowman. [Seal.]"

Alleging that the $100 paid, and the conveyance of one tenth (1-10) of the lots, was all the consideration appellant was to receive. Also alleging its willingness and offer to make conveyance of the lots, and the refusal of appellant to receive.

Appellant was the occupant of 160 acres of land, having a pre-emption right upon it. The land was adjoining, and partially between, tracts of land belonging to the appellee. Appellee, being desirous of obtaining the land, entered into negotiations with the appellant, which resulted in the conveyance of the land. The possession| of the property was delivered to appellee. Appellant perfected his pre-emption right, entered the land, and received a receipt from the government land office on the 19th of August, 1889. Appellant instituted this suit, alleging his former ownership of the land; that it was of the value of $7.000; that appellee procured the deed through false and fraudulent representa-The answer also contains the following: tions. Also alleging a failure to perform as agreed upon the part of the appellee. Alleging, also, that promises made to him by way of inducement, to build an hotel worth $75,000, grade streets, bring in water, etc., to enhance the value of the property, had not been kept; that with the exception of a partial and imperfect survey, dividing a portion of the land into lots and streets, nothing had been done; and that the sum of $100 was all the consideration he had received for the land, and praying that the deed be canceled, and for other and proper relief.

Appellee, after denying generally the allegations of fraud, etc., in the complaint, set out the following instrument in writing:

"Know all men by these presents, that the Green Mountain Falls Town and Improvement Company, a corporation, with its principal office in the city of Colorado Springs, county of El Paso, and state of Colorado, is held and firmly bound unto James Boyes, of the county and state aforesaid, in the penal sum of five hundred dollars ($500) lawful money of the United States, for the payment of which sum, well and truly to be made to the said James Boyes, the said company binds itself and its successors. Sealed with its corporate seal, and dated this 26th day of December, A. D. 1888. The Green Moun

That appellee "should survey and plat into lots within thirty days, and grade and improve the streets. No time was specified when streets should be graded, but understanding that it was to be done when streets were needed. That defendant was to make other valuable improvements, which were understood to be waterworks. That, as further consideration for said deed, defendant was to convey plaintiff one-tenth the lots so surveyed and platted of said lands. Defendant stands ready to and will grade said streets when needed," etc. A replication was filed, in which the statute of frauds was pleaded to the instrument relied upon. A trial was had to the court, a finding for the defendant, and a decree dismissing the suit.

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veyed his land. It is stated in the complaint that appellant was a laboring man, of foreign birth, with very limited business knowledge and education. The truth of this allegation is established by the transaction, and the acceptance of the contract with only a penalty of $500. It is alleged in the complaint that the property conveyed was worth $7,000. Upon the trial, officers of appellee, and witnesses in its behalf, fixed the value, variously, from $6,000 to $10,000. In regard to the conversations and inducements held out to appellant by officers of appellee in order to secure the property, there is some slight conflict of testimony, but, in all important particulars, witnesses substantially agree. Appellant was informed by Mr. Sprague, an officer of appellee, that streets were to be laid out and graded; waterworks put in; an hotel, to cost $75,000, to be built upon the laud. Appellant still hesitating, Sprague asks him to see Mr. Dow, the president, and said, "that whatever Dow Said I could depend upon; that he had the money to make the improvements, etc. Mr. Dow was seen, and so far corroborated Sprague as to induce him to make the arrangement. It at once becomes apparent that the inducement for the conveyance of nine-tenths of the property was the agreement to expend a large sum of money then on hand in the improvement of the property conveyed; and the consideration, the enhanced value of the other one-tenth by reason of such expenditure of money in improvements. Such is the unavoidable conclusion from all the testimony in the case, the circumstances and condition of the parties. It is evident that appellant relied upon the honor, ability, and integrity of the officers with whom be dealt, and their assurance of funds on hand to make the contemplated improvements, and intention to do it; otherwise, he would have no consideration whatever, except the $100 received. Appellee failed to realize upon the enterprise, the "boom" col lapsed, and, no matter how honorable its intentions were, was unable to comply with the contract entered into, upon technical interpretation of which it now attempts to escape, and make appellan* the victim.

It is alleged that it had expended $600 or $700 in surveying and platting a portion of the property into lots. At that point it stopped, and required appellant to proceed to a division of the lots surveyed. The parties met, and the following is the uncontradicted testimony of appellant in regard to what occurred at the interview: "Saw Dow next evening. He wanted to know why I had not di vided the lots. I told him that they had not fulfilled their contract. He said they had not agreed to make the improvements before division. I told him I had not agreed to divide the lots until improvements were made. He said they were going ahead to sell the lots; they had a deed to the property, and were not going to make any more improvements, and all I could collect was the $500; that they were under no obligation to grade

the streets then.'" And this is corroborated by the defense interposed. In the answer it is said: "Defendant stands ready to, and will, grade said streets, when needed." The defense is not such as to appeal to a chancellor,-a falling back and reliance upon the contract, as far as appellant is concerned, while evading and avoiding its express stipulations, and the evident intention and understanding of the parties. When the stipulations of a contract are relied upon, the party insisting must show full, complete, and techni cal compliance with all important requirements. The obligations assumed by the appellee in the contract are as follows: "Now, therefore, if said company shall survey, grade, and improve the streets on said lands, make other valuable improvements thereon, and commence, within thirty days of the date hereof, to survey into lots, and plat, said lands, or so much thereof as said company may deem practicable, and deed to said Boyes one-tenth of said lots so platted, to be divided as follows, to wit.' It first covenants to survey, grade, and improve the streets; second, “make other valuable improvements thereon:" then follows in regard to surveying and platting of lots, and their division between the parties. It being conceded, or apparent, that the enhanced value of the onetenth by reason of the contemplated improvements, and the expenditure of money upon the property, was the sole consideration for the conveyance of the nine-tenths, the failure to perform worked an absolute failure of consideration. The agreements on the part of the appellee must be regarded as conditions precedent to its right to enforce the contract against appellant. The setting of stakes, and a plat upon paper, left the land in its natural state, as far 25 marketable value was concerned. The entire tract. as owned by appellant before the conveyance, was in the sume situation it was when he was required to take one-tenth in consideration. The avowal of the appellee of a willingness and intention to lay out and grade streets when they should be needed is of no value. It was 10 precede. It is an attempted evasion.an attempted reversal of the natural order. The laying out and grading of streets was necessary to the habitation of the lots. Occupants could not be expected to enter upon the land, and compel the opening of streets. The other valuable improvements covenanted to be made had not been made of entered upon, not had any survey or plat of the lots been made as agreed. The contract was to survey and plat the lands conveyed. testimony shows appellee to have owned lands adjoining the land in question on two sides, and that in the survey the lots crossed the lines, a fractional part of the lot being on each tract. This was clearly a violation of the contract, rendering the division provided for impossible. Appellant was not required to divide lots, or take compensation from lands other than that conveyed by him. Appellee, by its answer, sets up the contract, and insists upon specific performance on the part of

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appellant. The acts to be performed by appellee being conditions precedent, and not having been performed, it is not legally in a position to enforce the contract against the other party. "When a contract rests upon a condition precedent, until the performance of the condition, it cannot be enforced, because until that time there is no true contract.

The fact that a contract depends upon a condition precedent which has not been performed is always a complete defense to a suit for its specific enforcement." Pom. Spec. Perf. § 334; Canal Co. v. Ware, 23 Beav. 586; Laning v. Cole, 4 N. J. Eq. 229; Dilly v. Barnard, & Gill & J. 170; Jones v. Roberts, 6 Call, 187.

Appellee having failed to comply with its covenants and agreements, and relying upon the penalty of $500 and the letter of the contract, as against appellant, he was justified in regarding the contract at an end. No court of equity could or would compel him to take one-tenth of the property he conveyed, in the same condition as when he conveyed, as a consideration for the whole. The rescission or cancellation of contracts or deeds, and specific performance, are not matters of absolute right, but are matters of sound discretion, in a court of equity, to be granted or refused according to its own ideas of what is reasonable and right. 1 Story, Eq. Jur. §§ 206, 692, 693: Mortlock v. Buller, 10 Ves. 293. In Torrance v. Bolton, L. R. 8 Ch. App. 118, it is laid down "that there is no general rule that actual fraud is necessary. Even in sales of land, if the contract or enforcement of it is, in the opinion of the court, unconscientious, equity will rescind it." Graham v. Johnson, L. R. 8 Eq. 36; Jones v. Bolles, 9 Wall. 364; Glastenbury v. McDonald, 44 Vt. 450; Wilson v. Getty, 57 Pa. St. 266; Martin v. Graves, 5 Allen, 601. The court will take jurisdiction, and decree deeds, leases, or contracts to be canceled "when enforcing instruments or agreements would be inequitable or unjust. Baker v. Monk, 4 De Gex, J. & S. 388; Wright v. Vanderplank, 8 De Gex, M. & G. 133; Hyer v. Little, 20 N. J. Eq. 443; Allore v. Jewell, 94 U. S. 506; Reid v. Burns, 13 Ohio St. 49. But in this case it is unnecessary to rely upon the equitable power and jurisdiction of the court to cancel and set aside the contract as in. equitable and unjust. A failure to perform on the part of appellee was so far a repudiation of the contract as to warrant appellant in regarding it as rescinded, and he had his election either to sue at law for the breach for damages,-treating the conveyance as valid,-or, as in this case, to bring suit to cancel the conveyance and recover his land. In 2 Pars. Cont. 679, it is stated: "Generally, where one fails to perform his part of the contract, or disables himself from performing it, the other party may treat the contract as re scinded." See Keys v. Harwood, 2 C. B. 905; Planche v. Colburn, 8 Bing. 14; Shaw v. Turnpike Co., 2 Pen. & W. 454; Goodrich v. Lafflin, 1 Pick. 57; Hill v. Green, 4 Pick. 114.

Before entering into the final contract, appellee offered $1,000 for the property,

which was declined. Upon the trial, officers and witnesses of appellee fixed the value of the property at from $6,000 to $10,000, and appellee had paid but $109. To allow appellee, after failure to perform its covenants to give the property value, to retain the property, by falling back upon the $500 penalty, thus keeping the property for $600, would be clearly unjust and inequitable. The district court erred in dismissing the suit, in effect holding appellant to specific performance. The decree will be reversed and cause remanded.

WOOD V. LAKE.

3 Colo.A. 284

(Court of Appeals of Colorado. May 8, 1893.) CERTIORARI-REQUISITES OF PETITION.

1. Under Gen. St. 1883, § 1995, a petition in certiorari in the county court to review a judgment of a justice must state that the judgment was not the result of negligence on plaintiff's part; that the judgment, in plaintiff's opinion, is erroneous, specifying the injustice; and that it was not in his power to take an appeal in the ordinary way, setting forth the circumstances.

2. The remedy so provided, being in the chapter regulating justices, is exclusive, and the general provisions of the Code relative to certiorari are not applicable.

Error to Garfield county court. Proceedings in certiorari by Roderick Lake against Seth H. Wood. From a judgment for plaintiff, defendunt brings error. Reversed.

Seth H. Wood, for plaintiff in error. H. P. Bennet, Jr., and Robert A. Bennet, for defendant in error.

BISSELL, P. J. This is one of those extraordinary cases in which the judgment which was originally entered against Lake ought not to stand, and in which the judgment impeaching it, rendered upon proceedings under a writ of certiorari, cannot be sustained. The result looks like an apparent inequity, but under the record justice is not far from being accomplished. Emma Pruitt brought suit against Lake to recover $25 due her for work and labor done. Wood, a justice of the peace in Garfield county, after proper steps taken to that end, issued a writ of attachment in aid of the suit. It was effectuated by process of garnishment served on a corporation which admitted an indebtedness to Lake in a sum beyond the plaintiff's claim. After the action was started, Lake settled the case out of court, did not appear on the return day, and evidently sought to escape responsibility for the costs incurred by the proceedings. The justice sub-equently entered a judgment against him for the accrued costs, and included therein a fee of five dollars for the plaintiff's attorney, which the counsel contended he had earned in the collection of the debt. The judg ment was for $24.10, and when the justice issued an execution on it Lake endeavored to escape liability by attacking the judgment. It would not be useful to recite the various grounds on which it is claimed the judgment is invalid. It need only be

stated that the defendant, Lake, did not appear, and prosecuted no appeal. He subsequently initiated the present proceedings against Seth Wood, the justice, because that magistrate was without jurisdiction to enter it. When the petition was filed in the county court, that tribunal issued a writ of certiorari, brought up the proceedings, adjudged them to be erroneous, taxed the costs against the justice, and entered judgment accordingly.

If the parties had proceeded regularly and in accordance with the statute, the finding would have been good, and the magistrate would have been remediless. The act concerning justices and constables provides that in certain cases and under certain circumstances the judgments which may be entered by a justice of the peace are reviewable under proceedings initiated by this writ. There is no trouble in holding that the justice's act, which gives this remedy, must be exclusive, and that a party is bound to bring himself within the scope and terms of this law respecting it if he seeks otherwise than by appeal to overturn a judgment which the justice may have entered. It is seriously contended in argument that the Code provisions respecting the writ of certiorari are likewise applicable, and if, under either it or the justice's act, the proceedings may be justified, the judgment appealed from must stand. This cannot be the law. In general, the provisions of the Code have no relation to proceedings before a justice, and wherever, as in the present case, the act regulating the jurisdiction of justices of the peace provides the remedies when a litigant's rights are not respected by the magistrate, these remedies must be taken to be exclusive. The chapter concerning certiorari in the Code is therefore entirely napplicable, and the sufficiency of the present proceedings must be tested by the statute as interpreted by our supreme court. The act has been considered by that court on several different occasions. Their conclusions respecting its requirements are uniform, definite, and well settled. Tilton v. Association, 6 Colo. 288; Small v. Bischelberger, 7 Colo. 564, 4 Pac. Rep. 1195. Section 1995 of the General Statutes of 1883 requires the petition to contain, according to the decision last cited, three things, viz.: “First, that the judgment before the justice was not the result of negligence on his part; second, that the judgment, in his opinion, is erroneous and unjust, stating wherein such error and injustice consist; and, third, that it was not in his power to take an appeal in the ordinary way, setting forth the particular circumstances which prevented him from so doing." This very lucid statement of the law by Judge Helm removes all difficulty from the determination of this case. The petition in no respect complied with the statutory requisites thus clearly and abundantly stated. There was no showing whatever that the judgment was not the result of negligence, nor any showing that it was not in the power of Lake, against whom the judgment was entered, to take an appeal, and review the judg. v.33P.no.2-6

ment in the ordinary way. Since a petition lacking these or equivalent statements, and containing nothing to bring the case within the statutory requirements, will not, under those decisions, support an application for the writ and a judgment thereon, the action of the court below cannot be sustained. For the error committed by the court in entering the judgment upon an insufficient petition the case must be reversed and remanded.

3 Colo.A. 281

DITTO et al. v. JACKSON. Court of Appeals of Colorado. May 8, 1893.) MECHANICS' LIENS-PLEADING-DEMURRER.

The complaint of a subcontractor, to enforce a mechanic's lien, which fails to state hat, at the time plaintiff furnished the mateials to the contractor, no payments had been nade by the owner to the contractor, is not ubject to demurrer, when it contains averments implying that the owner is indebted to the contractor.

Appeal from district court, San Miguel county.

Action by William Jackson against G. M. Ditto and the Bank of Telluride to enforce a mechanic's lien. From a judgment for plaintiff, defendants appeal. Affirmed. W. H. Gabbert, for appellants. Hogg & Fitzgarrald, for appellee.

BISSELL, P. J. This judgment must be affirmed. It will be affirmed upon a much narrower basis than that outlined by the arguments of respective counsel. It is one of those controversies which are constantly springing from the attempted enlargement by the legislature of the preferential rights which the lien statutes give to contractors, and men who furnish material for the erection of buildings. In May, 1891, Ditto, one of the appellants, was the owner of certain premises in the town of Telluride, San Miguel county, and then entered into a contract with Frank Shewmaker to erect a building on the lot for an agreed sum of $800. In the further statement of his cause of action the plaintiff, Jackson, alleged that Shewmaker commenced the work, finished the building according to the contract, and prior to the 1st day of June completed the work, and in all respects fully complied with his contract. There are further allegations in regard to the lumber furnished by Jackson under a contract with Shewmaker, and the filing of a lien under the statute. It is apparently conceded by the appellants that the complaint is a sufficient statement of the cause of action, save in one particular, to wit, that the pleade: failed to state directly that no payments had been made by Ditto to the contractor, Shewmaker, prior to the time that Jack. son, the appellee, furnished the materials for which he seeks to recover in this action. The complaint was demurred to on the ground that it did not state facts sufficient to constitute a cause of action, and from the judginent overruling the demurrer the owner of the premises appeals.

The lien law of 1883 was radically amended by the act of 1889, (Sess. Laws 1889, p. 217.) Section 7 of the act substan

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contractor, whereby, as a matter of law,
the sum which the owner agreed to pay
for the building became due from him to
the contractor, and the right to a lien
would necessarily inure to the material
man who furnished the lumber, unless de-
feated by circumstances which are neither
pleaded nor proven. Whether the com-
plaint would have been open to a motion
in respect to this allegation, or whether a
special demurrer because of this particu-
lar defect would have been available,
need not be determined. It is enough to
say that in its allegations the complaint
did state a cause of action, which might
have been fully proved thereunder, and
was not vulnerable to a general attack for
a failure to state facts sufficient to entitle
the complainant, on proof, to a judgment.
The court committed no error in overrul-
ing the demurrer, and when the defend-
ants declined to answer, or in any other
manner assail the pleading, the court
rightly entered judgment thereon.
Affirmed.

3 Colo.A. 287

HUNTER et al. v. FERGUSON.
(Court of Appeals of Colorado. May 8, 1893.)
ATTACHMENT-WHEN AUTHORIZED — - PREFERRING
CREDITORS - DELAYING CREDITORS BY MAKING
ASSIGNMENT ASSIGNMENT FOR BENEFIT OF
CREDITORS-FRAUD-PROTECTION OF SURPLUS-

INSTRUCTIONS.

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1. The fact that a debtor, just before he makes, in good faith, an assignment for the benefit of creditors, pays some of his creditors, does not warrant an attachment on the ground that he has disposed of his property to defraud creditors.

tially provided that the lien of the subcon- | contract, and avers full compliance by the tractor should extend to the full amount to be paid the contractor by the owner of the property, and in express terms enact ed that "any payments made by the own er to the contractor, either before or after making such contract, * shall be at the risk of the owner. The arguments of counsel have been addressed to the construction of this statute. It is a matter of great gravity and serious importance, and one which must ultimately be decided whenever a case is brought here which dis closes in the record enough to justify its determination. The extent to which a legislature may go in determining what contracts parties may make concerning a given subject-matter, or the power which the lawmakers possess to impose limitations upon the rights of parties to enter into an engagement with which at the time third persons have no concern, and whose subsequent rights are derivative, and rest upon sufficient proof of the agreement between the original parties, is one to which the courts of the different states have at various times given great consideration, and reached conclusions not entirely harmonious. This identical ques. tion was once before pressed upon the attention of this court, and, while it was left undecided, this court said in reference to it. "It has been very ably and earnestly contended that since, under the statute of Colorado, the right to a lien is dependent upon the existence of a contract, the subcontractor can rightfully be held to be subject to its provisions, and that he can acquire no other or greater rights than flow to him therefrom, and that, regard. less of the statute, it must be adjudged that his rights are to be taken as limited and controlled by the terms of the agree ment between the original parties. There is great force in these suggestions." Davis v. Lumber Co., 31 Pac. Rep. 187. This intimation of the court's opinion respecting this matter was based upon an elaborate and well-considered case in Pennsylvania, (Schroeder v. Gailand, 134 Pa. St. 277, 19 Atl. Rep. 632,) which held that, since the subcontractor's right was entirely derivative, he was bound by the express limitations of the written contract between the original parties, under and by virtue of which his own agreement was to be performed, and from and through which his rights were solely and clearly derived. It is thus plain to see that under some circumstances it might be true that the subcontractor would be without the right to enforce a lien, or to contend that under and by virtue of the statute he could recover the amount of the original contract price, notwithstanding the terms of the agreement between the contractor and the owner. Since this might be true, it cannot be said that the complaint is open to a demurrer on the basis that it has failed to state facts sufficient to constitute a cause of action. It contains enough to warrant all the proof essential to a recovery on the part of the plaintiff, and contains, by sufficient inference, if not by direct statement, the averment that the owner of the property was indebted to the contractor. The pleader states the terms of the original

2. A general assignment by a debtor of all his property for the benefit of all his creditors, when made in good faith, though it may operate to hinder and delay creditors, is not a fraudulent disposition of property furnishing ground for an attachment.

3. An instruction that if the debtor believed, at the time the assignment was made, that there was enough property to pay all indebtedness, and if judiciously managed there would be a surplus left, and that one of the moving reasons for making such assignment was the protection of such surplus, such facts, in connection with the assignment, are a badge of fraud, is erroneous, where the only evidence of fraud is that the debtor had told plaintiff's husband that he need not be alarmed about his money, as he would have some $20,000 after the business was settled up, since the expectation of a surplus, or a desire to protect it, does not vitiate such assignment.

4. An instruction that a debtor is not allowed to make an assignment to prevent a sacrifice of his property, when no one but himself is in danger of loss by its immediate appropriation, is in conflict with the statute which provides "that any person may make a general assignment of all his property for the benefit of all his creditors."

Appeal from district court, Weld county.

Action by J. M. Ferguson against Samuel D. Hunter and George H. West on certain certificates of deposit. A writ of at tachment was issued in plaintiff's favor. From a judgment sustaining the attachment, defendants appeal. Reversed.

The other facts fully appear in the fol lowing statement by REED, J.:

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