De Peyster v. Michael

6 N.Y. 441
Procedural entryThis page is a short order in De Peyster v. Michael. Read the opinion of the Court — 6 N.Y. 467
New York Court of Appeals·Decided October 15, 1852·Published

Opinion

*Ruggles, C. J.

— This was an action of ^ # ejectment brought to recover land, on the ground of a breach of the condition to pay quarter-sale moneys.

The conveyance out of which the controversy arises is a lease in fee from James Van Rensselaer, of Albany, to [444]*444William P. Snyder, of Claverack, dated 23d November 1785. The plaintiff, De Peyster, is the assignee of the lessor, and the defendant is the assignee of the lessee. The rent reserved in the lease was forty-eight bushels of wheat. The lessor, for himself, his heirs and assigns, also saved and reserved the one equal fourth part of all the moneys owing, or that might arise, by or from the selling, renting, setting-over, assigning, or any how disposing of the premises leased, or any part or parcel thereof, by the said lessee, his heirs, executors, administrators and assigns, and when, and as often, and every time, the same shall be sold, rented, set-over, assigned or otherwise disposed of. The lessee covenanted, for himself, his heirs, executors, administrators and assigns, that whenever he, or they, should be inclined to sell the premises, or any part thereof, he, or they, should make the first offer to the plaintiff, in writing. If the lessor should not take it, at the price required, after deducting, one-fourth thereof, and all arrears of rent, the lessor covenanted to grant or permit the lessee, or his representatives, to sell or assign the premises; provided, however, that such sale or assignment should be void, and the premises should revert to the lessor, his heirs, &c., unless the seller or the purchaser should pay the lessor, his heirs, &c., one-fourth part of - the purchase-money it should be offered for. The lease was declared therein to be given upon the express condition, that if the rent should be in arrear for forty days, or if the lessee, his heirs or assigns, &c., * /ton i should not perform and keep all *the other cov- -* enants and conditions on his or their part to be kept and performed, then that the lessor, his heirs, &c., might re-enter upon the premises, and repossess and enjoy the same as of his former estate.

The plaintiff proved, on the trial, or gave evidence tending to show, that a portion of the premises contained in the lease had been sold or assigned to the [445]*445defendant, without paying to the assignee of the lessor a quarter of the sale-money, according to the covenant of the lessee. The defendant insisted, that the condition to pay the quarter-sales, as they are commonly called, was repugnant to the estate in fee granted by the lease, and was, therefore, void. The judge, at the circuit, decided the condition to be void, and nonsuited the plaintiff; the plaintiff excepted to the decision; the supreme court, at the general term, affirmed the decision at the circuit, and rendered judgment for the defendant. The plaintiff appeals to this court, and the sole question presented on the argument is, whether the condition in the lease to pay the quarter-sales is valid or void.

Until the adoption of the constitution of 1846, conditions of this nature, in leases for years, for lives and in fee, have not been unusual. These conditions, in leases for years and for lives, have been repeatedly upheld in this state, as valid, although in restraint of alienation. But their validity in grants or leases in fee has been drawn in question, in the supreme court, only in one case — that of Jackson v. Schutz (18 Johns. 174). That was an action of ejectment to recover for condition broken; there were two conditions in the lease; one, that the lessor should have the right of pre-emption, in case of a sale by the lessee; and the other, that one-tenth of the sale-money should be paid to the lessor; both conditions had been broken. There was a verdict for the plaintiff. Mr. Justice Platt, who delivered the opinion, held, that the condition to pay the tenth of the sale-money was valid, and that the plaintiff, for that reason, was entitled to judgment. Chief Justice Spencer was of opinion, that the plaintiff was entitled to judgment, on the ground that the condition giving *the lessor a right of f ^ pre-emption was lawful, and had been broken; *- on the other point, he expressed no opinion. That the plaintiff, in that case, was entitled to recover on the breach of the condition in relation to pre-emption was [446]*446not questioned, and it seems to be entirely clear. The case states distinctly that the lessee assigned the lease, without license from the lessors, and without offering the refusal to them. The decision of the other point, in relation to the tenth of the sale-money, was unnecessary, and it may well be, that it passed with little or no examination by any member of the court, excepting Mr. Justice Platt. It would, therefore, be doing great wrong to other parties interested, at that time or since, in the same question, to regard it as settled by the judgment in that case. That judgment never was reviewed in the court for the correction of errors; the defendant had no inducement to go there with it; because it must necessarily have been decided against him in that court, on the point noticed by Chief Justice Spencer. If, therefore, on a careful examination of the decision of the supreme court in the case of Jackson v. Schutz, on the point now in controversy, it should be found to be erroneous, it ought not to be adhered to as a rule of property; and, especially so, in regard to the lease in question, which was made long before that decision was pronounced.

In estates for lives or years, conditions in restraint of alienation are lawful; the books are full of cases in which they have been sanctioned in England. (Platt on Covenants 404.) In this state, conditions in leases for lives and years, to pay to the lessor a portion of the sale-moneys have been repeatedly recognised as valid. (7 Johns. 531; 15 Id. 277; 7 Cowen 285; 3 Wend. 230; 7 Hill 253.) The foundation of the pówer of the lessor to restrain alienation, in those cases, rests exclusively upon his ownership of the reversion; this appears by Brooke’s Abrigement, Condition, 57 a. “ If a man have lands for a term of years, on condition that he shall not grant over his estate, this is good, by reason of a reversion remaining in the lessor. The contrary, of a feoffment on * 492 I su°k conditi°nj or ^at the feoffee *shall not -* commit waste, for no right or interest remains in [447]*447the feoffor.” And according to the Touchstone (p. 130, Preston’s ed., Law Library, vol. 30) — “If a gift had been made to an abbot and his successor, on condition not to alien, this had been a good condition on account of the reversionary right of the grantor, since he will be entitled to the land by way of reverter, on the dissolution of the corporation. Even on a grant in fee to a corporation, and though the corporation may, unless restrained by condition, alien the fee-simple, yet, on the dissolution of the corporation, while owner, the reverter would be to the grantor or his heirs, instead of there being an escheat to the lord of the seignory.”

These references are sufficient to show, that the owner of the reversion, or possibility of reverter only, can restrain the alienation by his grantee in fee; and we have been referred to no case, and can find none, showing that any other interest whatever in the grantee will enable him to impose such restraint. We speak of the law as it stood previous to the constitution of 1846, which forbids the reservation of quarter-sales and the like.

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De Peyster v. Michael, 6 N.Y. 441 (N.Y. 1852).

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