Investors' Guaranty Corp. v. Thomson

225 P. 590, 31 Wyo. 264, 32 A.L.R. 1071, 1924 Wyo. LEXIS 25
CourtWyoming Supreme Court
DecidedApril 29, 1924
DocketNo. 1114
StatusPublished
Cited by9 cases

This text of 225 P. 590 (Investors' Guaranty Corp. v. Thomson) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Investors' Guaranty Corp. v. Thomson, 225 P. 590, 31 Wyo. 264, 32 A.L.R. 1071, 1924 Wyo. LEXIS 25 (Wyo. 1924).

Opinion

Buume, Justice.

This is an action brought by Eugene T. Thomson, as plaintiff, present owner of the reversion, against^ Investors Guaranty Corporation, to cancel a lease for violation of the covenant and condition prohibiting assignment thereof. The lease is for the south east quarter of the north east quarter, and the north east quarter of the south east quarter of section 14, T. 1 S. R. 3 east of Wind River Meridian, in Fremont County. It is dated October 14, 1908, and runs for 20 years.' It is made by the heirs of Flies on Top, an Indian, with the approval of the Department of the Interior of the United States, to the Arapahoe Trading Company, lessee and party of the second part, and its executors, administrators and assigns. The lease contains a covenant against assignment and a provision for re-entry in case of violation. The covenants and conditions of the lease are made binding upon the lessee, his executors, administrators and assigns. On December 16th, 1912, said lessee the Arapahoe Trading Company mortgaged said leasehold interest to G. P. Moor-head. This mortgage was foreclosed in the district court of Fremont County. An order of sale was issued out of said court, pursuant to which the leasehold interest was sold to said G. P. Moorhead and a sheriff’s deed was issued to him on December 29, 1916. Moorhead transferred his interest to L. C. Nelson on October 19, 1917. Nelson transferred his interest to William Wilk on January 25, 1918, and the latter in turn transferred his interest to Investors Guaranty Company, defendant herein, sometime during 1919, before the commencement of this action. No consent to any of these transfers, on the part of the lessors, was obtained before the sale of the land to the plaintiff. Two out of the three Indian lessors had given their consent to the transfer to Moorhead, but they were incompetent and their consent gave no validity to the assignment. An application was [270]*270made to the Secretary of the Interior so.me time during 1917 to obtain his consent also. This application was not acted on until November 9, 1920, at which time it was¡ approved. In the meantime and on May 23, 1918, the plaintiff duly bought the land in question from the Government of the United States. The sale was not made* subject to the lease, but plaintiff had knowledge of the existence thereof, although not of the fact that any assignment thereof had been made. The above mentioned proceedings before the Secretary of the Interior were had without knowledge of, or notice! to, the plaintiff. Some time during the fall of 1918, plaintiff learned that William Wilk held the lease and he entered into negotiations with him as to the adjustment of the rental under the lease pursuant to the terms thereof. Wilk, however, refused to make any adjustment, and, presumably, soon thereaftei’, without plaintiff’s knowledge or consent, transferred his interest, as before stated, to the defendant corporation, against which this action was commenced on September 6,1919, and the question is whether the judgment of the lower court in cancelling the lease, for violation of the covenant and condition against assignment, is right. The parties will be referred to herein as in the court below.

1. It is contended by counsel for defendant that the plaintiff is not a party that can complain of any assignments of the lease; that the grant of the reversion to plaintiff is a waiver by the grantor of the condition in the lease; that the right of re-entry is a personal privilege and cannot be exercised by the grantee of the reversion. We are cited to Wagner v. Wallowa County, 76 Or. 453, 148 Pac. 1140, L. R. A. 1916F 303, but that case does not involve a lease. The common law rule prohibiting the transfer of the right to re-enter for breach of a condition was changed by St. 32 Henry VIII, c. 35, as regards conditions in leases for life or years, so as to allow the grantee of the reversion to avail himself of the condition. Tiffany, Real Property, Sec. 86 (c) ; Tiffany, L. & T., Sec. 149. This statute became a part [271]*271of the law of this state by section 4547, Wyo. C. S. 1920, which provides among other things that:

“The common law of England, as modified by judicial decisions, so far as the same is of a general nature and not inapplicable, and all- declaratory or remedial acts or statutes made in aid of, or to supply the defects of the common law prior to the fourth year of James the First * * * shall be the rule of decision in this state” etc.

Anri it is said by Tiffany, supra, that the right of the transferee of the reversion to enforce a forfeiture in a lease has not been denied in any state, and there seems to be no doubt, in view of the statute of Henry VIII, above referred to, that the transferee stands in the shoes of the transferor and may enforce the covenant as well as the condition against the assignment, at least as to a breach thereof subsequent to the transfer. Tiffany, L. & T., Sec. 152 (i), Sec. 149 G, p. 885; Bailey v. Allen E. Walker Co., (App. D. C.) 290 Fed. 282; The fact that a lease is made to the lessee * ‘ and his assigns, ’ ’ does not alter that fact. Such provision and a covenant and condition not to assign are not repugnant, for the word “assigns” in the granting clause of the lease applies only to such assigns as there may lawfully be by license or by operation of law. Tiffany, L. & T. Sec. 152 (i). We are cited to Chilson v. Cavanagh, 61 Ok. 98, 160 Pac. 601; L. R. A. 1918D 1044; Jones v. Moncrief-Cook Co., 25 Okl. 856, 108 Pac. 403 and other cases holding that the transferee could not take advantage of any breach that took place before the transfer to him of the reversion. In these cases the transferee had waived the breach. It may be a question whether the grantee of a reversion has the right to take advantage of any breach of a condition previous to the transfer. Tiffany, Real Property, Sec. 86, states that the statute of 32 Henry VIII does not enable a transferee of the reversion to enforce a forfeiture for breach of condition, if the breach occurred before the making of the transfer. See also Tiffany, L. & T. Sec. 149 (9). But see [272]*272Smith v. Lewis, 20 Pa. Dist. 459. The point is of comparative unimportance here, for the reason that the plaintiff also relies upon the violation of the lease by reason of the assignment made by Wilk to the defendant after the foregoing transfer. This assignment was made without the knowledge or consent of plaintiff and was of itself a sufficient breach of the condition against assignment to give plaintiff the right to cancel the lease, unless that condition was destroyed, as claimed by defendant, by reason of"consent to a previous assignment, or a waiver of a previous breach. This is, in fact, what defendant contends. His counsel argues that a condition is unapportionable, indivisibile, entire and single; that at least the assignment to Moorhead, made previous to the time that plaintiff became owner of the land, was licensed or the breach in connection therewith was waived, and that this license or waiver destroyed the whole condition, according to the rule in Dumpor’s case, hereinafter discussed, leaving subsequent assignees the right to assign at will. The claim that there was a license to assign rests upon the consent to the assignment to Moorhead given by the secretary of the Interior on November 9, 1920. But this was two and one half years after plaintiff became the owner of the land. True, an application to have that assignment approved had been filed in 1917.

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Cite This Page — Counsel Stack

Bluebook (online)
225 P. 590, 31 Wyo. 264, 32 A.L.R. 1071, 1924 Wyo. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/investors-guaranty-corp-v-thomson-wyo-1924.