Puerto Rico v. Russell & Co.

The question for decision is whether a statute of Puerto Rico impairs the obligation of certain contracts in violation of the Island’s organic law.1

The respondent’s predecessor in title, Fortuna Estates, as owner or lessee of lands adjacent to the Jacaguas River, enjoyed under Spanish law, and respondent, as successor, still enjoys, rights appurtenant to the lands to draw from the river 12,612.1 acre-feet of water per year for irrigation.

Puerto Rico adopted a law in 19082 which authorized an irrigation system, as part of which a dam was to be erected in Jacaguas River above Fortuna’s intakes.…