Feigen v. Green Harbour Beach Club, Inc.

25 Misc. 2d 101, 204 N.Y.S.2d 381, 1960 N.Y. Misc. LEXIS 2886
New York Supreme Court·Decided June 2, 1960·Published·Cited by 5 cases

Opinion

Bernard S. Meter, J.

This action concerns properties within a tract of 133 acres originally acquired by defendant Harbour Green Estates, Inc. The president of that corporation and of defendants Ivy-Larel Corp. and Creston-Springs Corp., which were building corporations, was defendant Allan V. Rose. For convenience, all four are referred to hereafter as Rose Interests, it being conceded that their relationship was such that the acts of one bind the others. The 133-acre tract was subdivided into five sections. Section 3 consisted entirely of interior parcels. All of the other sections included beachfront parcels. Section 1 is of importance in the action only in that, to conform to Federal Housing Authority eligibility requirements, a declaration covering that section was filed which, among other things, prohibited use of any parcel in the section for other than one-family dwelling purposes. No other declaration of restrictions was filed with respect to any other section, and the section 1 declaration specifically excluded from its effect any land outside section 1. Section 2 was, in the main, developed by the Rose Interests, although certain lots were sold to individuals and some were sold to defendant Sea View Estates, Inc. Defendant Rose is an officer and 10% stockholder in Sea View Estates, Inc., but that corporation is not otherwise connected with the Rose Interests. Section 4 was sold by the Rose Interests to defendant Cameo-at-Harbour Green, Inc, Defendant Jamsu Realty Corp. is a subsidiary of Cameo and defendants Rosenberg and Gerla are officers of those and other Cameo subsidiary corporations. For convenience, Cameo, Jamsu, Rosenberg and Gerla and any other subsidiary corpora[103] tion of theirs are hereafter referred to as Cameo Interests. Both Cameo Intersts and Sea View Estates, Inc., are in default.

Plaintiffs are the grantees of seven homes in section 2, five of which were purchased from Bose Interests and two from Sea View Estates. Defendant Green Harbour Beach Club, Inc. (hereafter referred to as Beach Club ”) purchased from Cameo Interests a beachfront tract in section 4 and defendant General Facilities, Inc., acquired from Bose Interests the lot immediately east of the Beach Club tract, which, however, is in section 2. Both propose to use their land for private beach club purposes. At all times material to this action, the entire 133-acre tract has been zoned Besidence “ C ”. In such a district, a private club is a permitted use when authorized by the Town Board as a special exception, after a hearing. The Town Board has granted a special exception with respect to the Beach Club property; none has yet been requested for the General Facilities lot.

Plaintiffs, contending that, by oral statements, newspaper advertising, a display (hereafter referred to as the ‘ ‘ Chandler View ”) shown in the sales office, and brochures used in making sales, it was represented to them that land in the entire development would be used only for one-family residences and that the community beach shown in the brochure and on the Chandler View and referred to in the advertising would be the only beach in the entire development, by this action seek (1) to reform their purchase contracts and deeds to insert a restriction of the entire 133-acre tract to one-family residential use, (2) to enjoin use by Beach Club and General Facilities of their land for a beach club or for other than one-family residential purposes and to cause any beach facility erected thereon to be removed, and (3) a declaration that the entire 133-acre tract is, except for the community beach and boating facility constructed by Bose Interests as part of the development, subject to an equitable restriction limiting use to one-family residences.

This action is by the plaintiffs individually. It is not brought in a representative capacity, as was the complaint in Weil v. Atlantic Beach Holding Corp. (131 N. Y. S. 2d 225, 231, mod. 285 App. Div. 1080, mod. 1 N Y 2d 20) nor has the association of which plaintiffs are members been joined, as was the case in Civic Assn. at Roslyn Country Club v. Levitt & Sons (7 N Y 2d 894) and Woodmere Parle Assn. v. Cedarpoint Realty Co. (279 App. Div. 672). Plaintiffs have elected to proceed individually and not to join either certain other builders who hold portions of the tract or the more than 100 other individual [104] home purchasers. Since the rights of those builders and individual purchasers would be affected by any declaratory judgment and they have not been joined, the court will, in the exercise of discretion, deny the prayer for a declaratory judgment affecting the entire tract. (Bach v. Grabfelder, 233 App. Div. 773; see Brechner v. Incorporated Village of Lake Success, 23 Misc 2d 159.) As to the requests for reformation, for an injunction and for other relief, defendants contend that the Statute of Frauds (Real Property Law, §§ 242, 259) proscribes the creation by oral representation of restrictions on the use of land, and that a merger clause in plaintiffs’ contracts and the parol evidence rule prevent the introduction of extrinsic evidence to establish the claimed equitable restriction.

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Feigen v. Green Harbour Beach Club, Inc., 25 Misc. 2d 101, 204 N.Y.S.2d 381, 1960 N.Y. Misc. LEXIS 2886 (N.Y. Super. Ct. 1960).

25 Misc. 2d 101 (Feigen v. Green Harbour Beach Club, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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