Summary

Kern River Company v. United States…

The agreed statement of facts shows that the right of way never has been used for irrigation, and also that the appellants are effectually and permanently precluded from using it for that purpose by reason of an agreement entered into by the grantee and of a judicial decree to the rendition of which the grantee expressly consented. Thus it appears that the condition on which the grant was made has been not only broken, but also rendered impossible of performance. This entitles the United States to assert and enforce a forfeiture of the grant
Source: Wikisource

Kern River Company v. United States…

The District Court concluded that the charge of fraud in procurding the Secretary's approval was not sustained, and that, in the absence of an act of Congrees declaring a forfeiture or providing for a suit to that end, a forfeiture could not be decreed by the court. The bill was accordingly dismissed. On appeal by the United States the Circuit Court of Appeals concluded that the charge of fraud was adequately proved, and also that, if the Secretary acted with full knowledge of the facts, he exceeded his authority.
Source: Wikisource

Kern River Company v. United States…

The appellants take the position that the purposes for which they are selling the electric power are such as to make their use of the right of way a use for 'purposes of a public nature' in the sense of that section. But of this it suffices to say that, whether such a use be regarded as falling under that head or under the one described as the 'development of power,' it is a use which the section permits only where it is subsidiary to irrigation. It cannot take the place of the latter as the main purpose.
Source: Wikisource

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