American Strawboard Co. v. Haldeman Paper Co.

83 F. 619, 10 Ohio F. Dec. 627, 1897 U.S. App. LEXIS 2114
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 7, 1897
DocketNo. 499
StatusPublished
Cited by13 cases

This text of 83 F. 619 (American Strawboard Co. v. Haldeman Paper Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Strawboard Co. v. Haldeman Paper Co., 83 F. 619, 10 Ohio F. Dec. 627, 1897 U.S. App. LEXIS 2114 (6th Cir. 1897).

Opinion

LUBTON, Circuit Judge,

after making the foregoing statement of facts, delivered the opinion of the court.

At the conclusion of all the evidence the jury was instructed to .find for the plaintiff, and to assess ii.s damages upon the proofs, under the further directions of the court then given. Several requests made by the defendant below were refused, including one to return a verdict in its favor.

The error assigned upon the insí ruction to find for the defendant in error involves the substance of the whole case. This instruction has been defended upon two distinct grounds: First, that the covenant of (he vendor to convey by warranty deed was broken by the tender to the vendee of a form of deed which enlarged the term during which a particular use was prohibited by the provision in the lease, and by the insertion of a condition terminating the estate of the grantee upon breach of that covenant, irrespective of all questions of the right of the vendor to insert therein a covenant restricting the use in the particular and for the term, and under the penalty provided in the lease and option; second, that the purchaser was entitled to demand and receive a clear warranty deed containing no restrictions upon the use of the property whatever, and that the refusal of the vendor to make and tender such a deed constituted a breach of the covenant to convey by warranty deed.

Assuming, for the present, that defendant in error, as assignee of Friend, was affected and bound by the covenant in respect to a restricted use of the premises, and that the vendor had a right, to insert that covenant in its deed, it must: then be admitted that the deed which the plaintiff in error proposed to execute was not in accordance with the agreement. The form of deed submitted not only enlarged the prohibition of the covenant of the lessee in respect to lime, but included a condition terminating the estate of the grantee upon breach of the covenant:. The prohibition of a particular use was limited by the lease, in "case of a sale, to a term of 20 years from the date of the lease, and also provided that $20,000 should be paid as liquidated damages for a violation of that prohibition. It was therefore not admissible to extend the restriction to a term of 20 years from date of the deed, nor to alter the agreement as to the consequences in event the covenant was breached. . But the defendant in error did not base its objection to this deed upon these matters, hut distinctly took the ground, in the correspondence'which ensued, that it was not obliged to accept a deed which contained any restriction whatever upon the use of the premises, and declared its purpose to refuse any deed which contained any such covenant.

[622]*622The suggestion that the objection was limited to the condition terminating the estate upon a breach of the covenant finds no support. The letter of February 20, 1893, from Mr. Baird, representing the American Strawboard Company, in reply to the letter of Mr. Richardson, representing the Haldeman Paper Company, of February 17,1893, specifically inquired whether,the objection was to the “conditional clause in the deed.” To this the Haldeman Company replied under date of February 22, 1893:

“You are right in your understanding that we, object to the conditional clause in the deed, for the reason it is not the kind of a deed specified in the lease. All conditions, restrictions, and covenants concerning same are .in the lease-itself, and there is no reason why they should be put in the deed when the clause of the lease especially provides that the American Strawboard Company will convey the property with a good and sufficient warranty deed. We are unwilling to accept any other kind of a deed than a deed of general warranty, as provided for in the terms of the lease. If you will have this deed prepared and executed, and advise when you are ready, we will be prepared to meet you wherever you desire to dose up this purchase.' We remain,” etc.

The clear meaning of this language is that the objection was not to the form in which this covenant had been inserted, or to its insertion as a condition rather than as a mere covenant, but to the inclusion of any restriction upon, the use, whether by way of condition or covenant.

Several other letters subsequently passed between the parties, but this demand for a clear warranty deed, and this declaration of unwillingness to accept any deed which contained any restrictions, conditions, or covenants, was never modified.

The last communication addressed by the American Strawboard Company, relating to the form of deed, bears date-April 21, 1893, and was in reply to a letter from the attorneys representing the Haldeman Paper Company, in which they had again referred to the presence of “a condition” not justified by the option. In reply that company, among other things, said:

“That deed contains a stipulation and condition that strawboard shall not be manufactured on the premises conveyed for the period of thirty years. This is in exact accordance with the option as we construe it, and as we understand it was understood both by the American Strawboard and the Haldeman Paper Company. The American Strawboard Company has prepared and executed a deed containing that condition, and has offered to deliver it to the Haldeman Paper Company. The Haldeman Paper Company has refused to accept the deed as prepared, advising me that they base their refusal upon your advice. I am ready at any time to close this matter up, if you will accept the deed as drawn, or a deed containing a stipulation that strawboard, straw lumber, sheet strawboard, roll strawboard, wood-pulp board, pulp-line board, straw wrapping paper shall not be manufactured on the premises conveyed for the period of thirty years from the date of conveyance. I am instructed to say to you that the American -Strawboard Company will not make a conveyance which does not contain that stipulation. We are after the substance, and do not care as to the form in which the idea may be expressed. The American Strawboard Company would not have given an option on that plant for any such price if it had been proposed.to manufacture strawboard in it. If your clients do not intend to manufacture strawboard at this plant,. I cannot see why they should object to the condition being inserted as I have drawn it.”

This correspondence, taken as a whole, makes it clear that tbe Haldeman Paper Company was firm in its determination to receive no deed which contained the stipulation of the option of purchase re-[623]*623striding the use of the property. It is true that in the letter last referred to the term of this covenant is mentioned as “thirty years from date of conveyance,” but this was a manifest mistake of the draftsman of the letter. Xo attention was called to this by the Haldeman Company, and their refusal to go on with the contract was not based upon any enlargement of the term of prohibition, but upon the broader ground, that the covenant of the option of purchase should have-no place in the warranty deed which was demanded. In view of this uncompromising attitude, as to the legal rights of the Haldeman Company, it would have been an idle ceremony to have offered a deed embodying any restriction upon the use of the property what ever.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Woman's Clinic, Inc. v. St. John's Health System, Inc.
252 F. Supp. 2d 857 (W.D. Missouri, 2002)
Magnolia Petroleum Co. v. Suits
40 F.2d 161 (Tenth Circuit, 1930)
Gonzales v. Reynolds
275 P. 922 (New Mexico Supreme Court, 1929)
In re LEVINSON
295 F. 144 (W.D. Washington, 1923)
Pioneer Sand & Gravel Co. v. Seattle Construction & Dry Dock Co.
173 P. 508 (Washington Supreme Court, 1918)
Consolidated Arizona Smelting Co. v. Hinchman
212 F. 813 (First Circuit, 1914)
Wilder Manufacturing Co. v. Corn Products Refining Co.
75 S.E. 918 (Court of Appeals of Georgia, 1912)
Darius Cole Transp. Co. v. White Star Line
186 F. 63 (Sixth Circuit, 1911)
John D. Park & Sons Co. v. Hartman
153 F. 24 (Sixth Circuit, 1907)
Hartman v. John D. Park & Sons Co.
145 F. 358 (U.S. Circuit Court for the District of Kentucky, 1906)
Hale v. Kumler
85 F. 161 (Sixth Circuit, 1898)
United States v. Addyston Pipe & Steel Co.
85 F. 271 (Sixth Circuit, 1898)
Hitchcock v. Anthony
83 F. 779 (Sixth Circuit, 1897)

Cite This Page — Counsel Stack

Bluebook (online)
83 F. 619, 10 Ohio F. Dec. 627, 1897 U.S. App. LEXIS 2114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-strawboard-co-v-haldeman-paper-co-ca6-1897.