American Cannel Coal Co. v. Indiana Cotton Mills

134 N.E. 891, 78 Ind. App. 115, 1922 Ind. App. LEXIS 80
CourtIndiana Court of Appeals
DecidedMarch 31, 1922
DocketNo. 11,120
StatusPublished
Cited by6 cases

This text of 134 N.E. 891 (American Cannel Coal Co. v. Indiana Cotton Mills) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Cannel Coal Co. v. Indiana Cotton Mills, 134 N.E. 891, 78 Ind. App. 115, 1922 Ind. App. LEXIS 80 (Ind. Ct. App. 1922).

Opinion

Nichols, J.

— Action by appellant against appellee to enjoin appellee from erecting a building upon a described tract of land and for a mandatory injunction requiring appellee to remove therefrom so much of said building as had theretofore been erected on such real estate.

The amended complaint is in one paragraph to which appellee’s demurrer for want of facts was sustained. Appellant failed and refused to plead further and judgment was rendered on demurrer. The court’s ruling on demurrer is the only error assigned. The substance of the complaint is: That on and' prior to February 1, 1849, there' was existing in the State of Indiana a private-corporation known as the American Cannel Coal Company. Said coal company was incorporated under the act of the general assembly of the State of Indiana, approved February 7,1837, and was thereby constituted a corporation for the term of fifty years from February 7, 1837. On February 1, 1849, said coal company was the owner in fee simple with other real estate in [117]*117Perry county, Indiana, of ten certain lots designated on the revised plat of the town of Cannelton. Said town was at said time a prosperous incorporated town situated on the north bank of the Ohio river in Perry county, Indiana. Immediately along the river bank in said town there was a strip of ground used for a wharf or landing place. Immediately adjacent to said wharf or landing place and running parallel with said river there was a public street, known as Front street. Said real estate above described abutted on said street. On said February 1, 1849, the said coal company conveyed said real estate to said Cannelton Cotton Mills by warranty deed, which deed contained the following covenant :

“The American Cannel Coal Company for themselves, their successors, assigns and present lessee James Boyd shall have the right of way over a part of said out lot for a railway and cart road from the coal banks to the Ohio River, said roads together not to occupy more than forty feet in width and to run in nearly or quite a straight line from the outlet or discharging point of said coal bank to the Ohio River at the inclined plane where coal is now shipped, said roads entering out lot about 160 feet from its northerly corner, and running west a few degrees south until they pass out of said -lot about two hundred and fifty feet from said northerly corner, and it is further understood that it is a part of the consideration of this conveyance that an area of at least 195 feet in width of the lots above conveyed from the front of the main factory building including and extending to the Front street on the river shall always be left (open) for a (public) promenade, to be however, always under the control of said Cotton Mill Company and improved and protected in such manner as they shall deem advisable.”

At and prior to the time of said conveyance said Cannelton Cotton Mills had arranged to erect on said real [118]*118estate a main factory building, for the purpose of carrying on its business of manufacturing cotton therein, and within one year said Cannelton Cotton Mills did erect thereon a main factory, as contemplated by it at the time it received said conveyance; that said main factory was located facing the Front street facing on the river 600 feet distant therefrom and so as to leave vacant and not built upon an area of 195 feet in width and extending 600 feet from said street to the front of said main factory, and 195 feet in width as contemplated in said deed. Appellee has succeeded to all of the rights of said Cannelton Cotton Mills, and is now the owner and in possession of said real estate subject to said condition and reservation contained in said deed, and took title with full knowledge of said condition and reservation.

•The charter of said coal company afterwards expired by reason of the expiration of the time for which it was incorporated, but its business never was liquidated in any way. All of its property passed by operation of law to its stockholders, who, August 22, 1905, sold and by their deed conveyed to appellant herein all of the property and assets of said coal company including its interest and title in and to said condition and reservation contained in said deed to said Cannelton Cotton Mills, and appellant is now the owner and holder of the same.

In July, 1918, and before appellee commenced the erection of any building on said real estate appellant caused to be served a notice on appellee not to encroach on said real estate, nor to begin the erection of a building thereon, nor to use it in any way other than contemplated in the reservation. From the time of the execution of said deed up to within ninety days of the filing of this action said Cannelton Cotton Mills and appellee herein its successor in interest, observed and lived [119]*119up to said condition and reservation, but within the last ninety days appellee in violation of said condition and reservation and in disregard of said notice aforesaid, entered upon said area so reserved for a promenade and commenced the work of erecting a re-enforced concrete building thereon 100 feet by 260 feet in size in which it proposes to carry on its said business, and if it is permitted to finish and complete said building it will obstruct said area and will destroy it, for the purposes of a promenade. Said town of Cannelton is now a city. This appellant owns real estate in said city and is a taxpayer thereof.

Appellant prays that appellee may be enjoined and restrained from the further erection of said building on said area so reserved in said deed; that appellant may have a mandatory injunction compelling the removal from said area of so much of said building as may be already erected and for other proper relief.

1. The clause of the deed that is in controversy reads as follows: “And it is further understood that it is a part of the consideration of this conveyance that an area of at least one hundred and ninety-five (195) feet in width of the lots above conveyed from the front of the main factory building and extending to the Front street on the river shall always be left for a promenade to be, however, always under the control of said Cotton Mill Company, and improved and protected in such a manner as they shall deem advisable.” Appellant says that this clause is not a condition subsequent, it is not a condition, but that it is a covenant — a negative covenant restricting the use of lands. Appellee agrees with appellant’s contention, and the court is in harmony therewith. We shall therefore consider it as a negative or restrictive covenant. Restrictions upon the use of land where the same is conveyed in fee simple are looked upon with disfavor by the courts [120]*120and where they are attempted, they must clearly appear or they will not be enforced. The rule is thus aptly expressed in Casterton v. Plotkin (1915), 188 Mich. 333, 154 N. W. 151: “Restrictions in deeds will be construed strictly against the grantors and those claiming to enforce them, and all doubts resolved in favor of the free use of the property.”

In Van Duyn v. Chase & Co. (1910), 149 Iowa 222, 128 N. W. 300, the court says: “Moreover, it is not to be overlooked that the law favors the utmost freedom in dealing with real property. It is recognized as an article of commerce. As new wants develop and business increases and expands, the uses to which devoted are constantly changing.

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Bluebook (online)
134 N.E. 891, 78 Ind. App. 115, 1922 Ind. App. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-cannel-coal-co-v-indiana-cotton-mills-indctapp-1922.