First National Bank v. Security Bank

63 N.W. 264, 61 Minn. 25, 1895 Minn. LEXIS 281
CourtSupreme Court of Minnesota
DecidedMay 6, 1895
DocketNos. 9195—(33)
StatusPublished
Cited by11 cases

This text of 63 N.W. 264 (First National Bank v. Security Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Security Bank, 63 N.W. 264, 61 Minn. 25, 1895 Minn. LEXIS 281 (Mich. 1895).

Opinions

START, C. J.

On July 8, 1884, the plaintiff and Elsie Mathieswere owners of adjoining lots, situated in the city of Fergus Falls, —the former owning lot 9, and the latter lot 10, in block 13 of the original plat of the city, — and on that day they mutually executed a party-wall agreement relating to their lots, respectively, which was duly recorded in the office of the register of deeds of the proper county on July 11, 1884. This agreement, after the recital of the ownership of the adjoining lots by the parties, and that the first party (the plaintiff) was about to erect on its lot a brick building, provided that the first party might build one-half of the brick and stone wall of its building on the lot of the second party (Mathies), such wall to be used as a party wall, upon the terms, conditions, and considerations named therein, and, further, the second party,, for herself, her executors and assigns, covenanted with the first party, its successors or assigns, to pay to it or them at the time and whenever the construction of a building shall be commenced on lot 10, one-half of the cost of so much of the party wall as shall be used, in length, in the construction of such building. The rest of the provisions of the agreement here material are as follows: “And it is understood and agreed that the party of the first part hereby covenants that upon the payment by the party of the second part for that portion of said partition wall hereinbefore described, according to the terms hereinbefore specified, said party of the second part shall become the owner in fee of an undivided one-half of such portion of said partition wall as she shall be entitled to use in the manner and for the purposes hereinbefore specified; it being understood that such part and portion of said partition wall so used in construction of such building on said lot ten (10) as rests upon said lot ten (10) shall thereby become the property of the said party of the second part, her heirs or assigns. It is mutually agreed by and between the parties hereto that this agreement shall be perpetual, and at all times be construed as a covenant running with the land of the said party of the second part, being said lot ten (10) of said block thirteen (13), but that no-part of the fee of that part of lot ten (10) upon which the said party wall above described is to stand in part shall pass or be vested in [27]*27the said party of the first part, its successors or assigns, by virtue of these presents.” ,

After this agreement was made and recorded, and in the year 1884, the plaintiff erected its brick building, and placed one-half of its party wall on lot 10, pursuant to the agreement. On May 3, 1887, the original covenantor,' Mathies, conveyed by warranty deed lot 10, and her grantees on November 8, 1887, mortgaged the lot to M. J. Clark to secure the payment of $2,500; and thereafter, and on September 10,1888, they conveyed it by warranty deed to Willis J. Holmes, who on August 31, 1889, mortgaged it to T. E. Penny to secure the payment of $0,500; and during the summer of 1889 Holmes erected a brick building on the lot, and in so doing used 85 feet in length of the party wall as the wall of his building on the side next to the plaintiff’s lot. On January 31, 1893, the defendant, by virtue of the two mortgages on lot 10, and a foreclosure thereof, became the owner of lot 10 and the building thereon erected by Holmes, and has ever since been in the possession, use, and enjoyment thereof. The plaintiff has never been paid any part of the cost of the party wall, although it demanded such payment from Holmes and from the defendant after it became the owner of the building and lot, which was refused. Thereupon the plaintiff brought this action. The prayer of the plaintiff’s complaint was for equitable relief, that the amount it was entitled to recover be ascertained by the court, and that it have judgment therefor against the defendant, and that the same be adjudged a lien upon lot 10. The trial court found substantially the foregoing facts, and that one-half of the cost of so much of the party wall as was used in the erection of the defendant’s building was the sum of $831.82, and, as a conclusion of law, that the plaintiff was entitled to the relief demanded in its complaint; but a personal judgment only against the defendant for the amount was entered, from which it appealed.

1. Practically, the only question in this case is, does the party-wall agreement create an equitable charge or lien on the defendant’s lot to secure the payment of one-half of the cost of the party wall? If it does, the defendant’s title is subject to such charge, for the contract is a conveyance, within the recording acts of the state. It relates to the defendant’s lot, and, having been recorded, [28]*28it is notice to all subsequent purchasers and mortgagees acquiring any title to or lien thereon, and all persons claiming under them. Therefore it is imm'aterial whether the defendant had any other notice of the rights of the plaintiff, except that afforded by the record, and the existence of the party wall upon its lot, as a part of the building thereon.

In reading this party-wall agreement, for the purpose of ascertaining its meaning, it is important to note that by its express terms the- plaintiff acquires the right to place one-half of the wall upon what is now the defendant’s lot, and that it is to be used as a party wall only upon the condition and terms that the plaintiff or its assigns are paid one-half of the cost of the wall, which the covenantor agrees, for herself and her assigns, to pay whenever she or they shall commence the-erection "of a building on lot 10; that it is only by paying for the wall that she or they can acquire any title to it, — that is, the plaintiff remains the owner of the wall, until it is paid for, with the right to maintain it on the covenantor’s lot, for its exclusive use, until the right to use it as a party wall is acquired by her or them by such payment; and, further, that the agreement shall be perpetual, and be construed as a covenant running with the land.

While the declaration of theparties that the agreements shall run with the land is not controlling on the question whether or not they do, yet, when all the provisions of this covenant are read together, it is clear that those we have specially referred to do run with the land, for a covenant runs with the land when either the liability to perform it (i. e. its burdens), or the right to take advantage of it (i. e. its benefits), passes to the assignee of the land. Shaber v. St. Paul Water Co., 30 Minn. 179, 14 N. W. 874; Mackey v. Harmon, 34 Minn. 168, 24 N. W. 702. The manifest purpose of these special provisions is to secure the payment of the cost of one-half of the wall to the plaintiff or its assigns. The stipulation that this cost shall be paid at the time of the commencement of the erection of the building on lot 10 simply fixes the time when the right to demand the payment accrues. Because the plaintiff did not insist upon the payment at the time, it is not bound to rely solely upon the personal liability of the then owner. To hold, as claimed by defendant, that plaintiff’s remedy is limited to a per[29]*29sonal action against Holmes, the assign who first used the wall in erecting the building, it would be necessary to eliminate from the contract, by construction, its express provisions that the wall is to be used as a party wall only upon the condition of payment, and until that is made the whole wall belongs to the plaintiff.

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Cite This Page — Counsel Stack

Bluebook (online)
63 N.W. 264, 61 Minn. 25, 1895 Minn. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-security-bank-minn-1895.