Atlas Terminals, Inc. v. Sokol

203 Cal. App. 2d 191, 21 Cal. Rptr. 293, 1962 Cal. App. LEXIS 2349
CourtCalifornia Court of Appeal
DecidedMay 2, 1962
DocketCiv. 25672
StatusPublished
Cited by9 cases

This text of 203 Cal. App. 2d 191 (Atlas Terminals, Inc. v. Sokol) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlas Terminals, Inc. v. Sokol, 203 Cal. App. 2d 191, 21 Cal. Rptr. 293, 1962 Cal. App. LEXIS 2349 (Cal. Ct. App. 1962).

Opinion

*193 ASHBURN, J.

Plaintiff Atlas Terminals, Inc., brought this action for declaratory relief and quiet title, having as its objective an adjudication that restrictions imposed upon lots in tract No. 5542, commonly known as Carthay Circle Tract, in the City of Los Angeles, are not binding upon lots 63 to 69, inclusive, which are owned by plaintiff and front on the north side of Warner Drive in said tract. Plaintiff also owns lots 14 to 18 fronting on Wilshire Boulevard and plans to erect a 27-story office building thereon with a two-story garage, 400 feet long, situated on lots 63-68, which adjoin 14 to 18 on the south. The Wilshire frontage was adjudged in 1938 to be no longer bound by the restrictions confining use to first-class family residences; the properties adjoining that tier of lots on the south, i.e., lots on the north side of Warner Drive, have never been so relieved except lot 63 and 40 feet of lot 64 which were also cleared by a court decree. In its major aspects the judgment went against plaintiff though it declares unenforceable certain minor 1 Plaintiff appeals.

The tract, consisting of 134 acres and comprising more than 490 lots, is situated at the southwest corner of the intersection of Wilshire Boulevard and Fairfax Avenue, extending thence to the Beverly Hills city limit on the west and to Olympic Boulevard on the south. Warner Drive parallels Wilshire and is one block south of it. McCarthy Vista runs approximately north and south and is the next street west of Fairfax. However, there is a passageway (apparently for pedestrians only) which runs north and south approximately half way between Fairfax and McCarthy Vista; it bears the name San Diego Way. Lots 63-69 lie between McCarthy Vista and San Diego Way and front south on Warner Drive.

The rapid growth of Wilshire and Fairfax as major traffic arteries and business frontage has substantially impaired the desirability of lots bordering on the street for first class residential purposes. The trial judge, after months of taking evidence and a careful inspection of the properties involved in the action, concluded that the Warner Drive frontage in *194 question had been so impaired by the encroachments of business on Wilshire that it is no longer desirable for first-class residential use and is suitable and desirable only for business and commercial uses as an adjunct to Wilshire Boulevard property, but that enforcement of said restrictions upon plaintiff’s lots (except 63 and part of 64) will continue to benefit and effectuate the purposes of same as originally imposed with respect to other lots in the tract such as those owned by interveners who “fairly represent all owners of single family residential property” in the tract; that the lots on the north side of Warner Drive must he preserved as a buffer between business and residence use, though enforcement of the restrictions upon those particular lots will not be of any value or benefit to them. Viewing the matter in the large the court decided that, for the preservation of the residential nature of the tract as a whole, the line between business and residences must be drawn at the rear boundary of the lots on the north side of Warner Drive. In other words, that the erosion of business upon the perimeters of the tract should not be permitted in equity to advance unchecked from one tier of lots to another until the major purposes of the subdivision are defeated, for the tract as a whole after many years (1922 to 1961) “is developed and well maintained as a single family residence district” and “the continued maintenance of such restrictions is of material and continuing benefit to the remaining properties in said tract.” For reasons hereinafter set forth we have concluded that this ruling is correct.

Major restrictions around which this case revolves are these: “That said lot or lots facing or fronting upon Warner Drive east of McCarthy Vista and on Del Valle Drive shall be used for residence purposes only; That no apartment house, flat, lodging house, hotel or any building or structure whatever other than one first-class single private residence of one-story only on Del Valle Drive, and of two-stories only on Warner Drive, with the customary outbuildings, including a private garage, shall be erected, placed or permitted on said lots.” The restrictions were imposed pursuant to a general and uniform plan of improvement and are molded in the form of conditions and covenants inuring to the benefit of all lot owners in the tract and constitute equitable servitudes upon each lot for the benefit of all others, binding upon and inuring to the benefit of the successors in interest of each lot owner.

Plaintiff’s contention is that the neighborhood has so changed that the lots in question are no longer suited to *195 single private residence use and it is inequitable to enforce that restriction against them and their owner, the plaintiff. There is, as will be shown, no hard and fast rule that clearing boulevard frontage of restrictions connotes a further right to do that with respect to a second tier of lots and then a third and so on until a whole tract is freed merely because the frontage on a given street is no longer suitable for continuance of the use prescribed by the restrictions.

The guiding principle here applicable is thus stated in Fairchild v. Raines, 24 Cal.2d 818, 828 [151 P.2d 260] : “Even if restrictions are not enforcible as to every lot in an area originally covered by an agreement they may be upheld as to a part of that area if such part is of sufficient extent and so located that the original purpose of the restrictions can be accomplished.”

Volume 7, Hastings Law Journal, page 210: “California and other states have taken the view that restrictive covenants will be enforced if they are of ‘substantial value’ to remaining lot owners and if no ‘radical’ changes have occurred.” Volume 2, Witkin, Summary of California Law (7th ed.) section 221, page 1052: “But the change must be such that the original purpose of the restriction can no longer be realized.” Volume 16, California Law Review, page 60: “The change must be such as practically to defeat the purpose of the restriction. ’ ’

Mr. Justice Spence’s dissent in Wolff v. Fallon, 44 Cal.2d 695, 699 [283 P.2d 802], says this: “ [O]ne of the main cases upon which the majority relies clearly indicates that the changed conditions in the neighborhood must have ‘rendered the purpose of the restrictions obsolete. ’ (Marra v. Aetna Const. Co., 15 Cal.2d 375, 378 [101 P.2d 490].) This court further said: ‘But, if the original purpose of the covenant can still be realized, it will be enforced even though the unrestricted use of the property would be more profitable to its owner. ’ (Pp. 378-379.) ...

“There is no finding by the trial court that any alleged changes in the neighborhood have rendered the purposes of the restrictions ‘obsolete’ or that the original purpose of such restrictions cannot be realized; and if any of the trial court’s findings may be said to be to that effect, I find no evidence to support such findings.

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Bluebook (online)
203 Cal. App. 2d 191, 21 Cal. Rptr. 293, 1962 Cal. App. LEXIS 2349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlas-terminals-inc-v-sokol-calctapp-1962.