Linder Corp. v. Pyeatt

264 S.W.2d 619, 222 Ark. 949, 1954 Ark. LEXIS 805
CourtSupreme Court of Arkansas
DecidedJanuary 25, 1954
Docket5-261
StatusPublished
Cited by7 cases

This text of 264 S.W.2d 619 (Linder Corp. v. Pyeatt) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Linder Corp. v. Pyeatt, 264 S.W.2d 619, 222 Ark. 949, 1954 Ark. LEXIS 805 (Ark. 1954).

Opinion

Ed. F. McFaddin, J.

The question posed is whether a certain restrictive covenant should he cancelled as a cloud on the title of the plaintiff property owners. The Chancery Court granted the prayed relief; and by this appeal the defendant challenges the correctness of the decree.

For several years prior to April, 1946, the Lakeside Lumber Company (a partnership composed of Paul Leird and others, and hereinafter called “Lakeside”) owned a tract of approximately 115 acres situated East of the City of Searcy. Near the center of this 115-acre tract there was an artificial body of water covering several acres and called ‘ ‘Lake Doniphan. ’ ’ The mill and houses of Lakeside were on the East side of Lake Doniphan; and the lands on the West side of Lake Doniphan were wooded and used for pasture purposes. The lake served as a source of water for the mill and also as a swimming pool for the mill’s employees.

On April 15, 1946, (after it was already known that U. S. Highway No. 67 would be re-routed so as to pass through this 115-acre tract) Lakeside conveyed to the appellant, Linder Corp. (hereinafter called “Linder”), the Lakeside mill and equipment and all of the 115-acre tract lying East of the center line of Lake Doniphan; and the deed from Lakeside to Linder contained this restrictive covenant as regards the lands lying West of the center line of Lake Doniphan:

“We the undersigned further covenant with the said Linder Corporation that we will file a plat and bill of assurance subdividing the property which we now own on the West side of Lake Doniphan into six (6) building lots and that we will restrict the use of said lots to residential purposes requiring that no residence be built thereon to cost less than Seven Thousand, Five Hundred Dollars ($7,500.00).”

The foregoing quoted language will be hereinafter referred to as “the restrictive covenant.” Lakeside did not file the plat or bill of assurance, but in July, 1947, conveyed all of its lands lying West of the center line of Lake Doniphan to appellees, Pyeatt and Vaughan by a Deed which stated that the conveyed lands were subject to “the following encumbrances, to which this conveyance is made subject, to-wit:

“(1) A right-of-way for U. S. Highway No. 67 as now surveyed and under construction across portions of the above described lands.
“ (2) The following covenant contained in the deed from Lakeside Lumber Company, the partnership aforesaid, to Linder Corporation, which is of record in the office of the Circuit Clerk and Ex-Officio Recorder of White County, Arkansas, which reads as follows:
“ ‘We the undersigned further covenant with the said Linder Corporation that we will file a plat and bill of assurance subdividing the property which we now own on the West side of Lake Doniphan into six (6) building lots and that we will restrict the use of said lots to residential purposes requiring that no residence be built thereon to cost less than seven thousand five hundred dollars ($7,500.00).’
“The grantees herein assume the aforesaid undertaking and covenant in the aforesaid deed to the Linder Corporation, and do hereby agree to save the grantors harmless from any loss, damage or expense hereafter incurred by the grantors by reason of any failure, if any, of the grantees to fulfill said covenant.”

It will be observed that the restrictive covenant contained in the deed from Lakeside to Linder was carried verbatim in the deed from Lakeside to Pyeatt and Vaughan.

Instead of dividing the lands lying West of the center line of Lake Doniphan into six lots and restricting all of the said lots as to cost of residential buildings, as stated in the foregoing restrictive covenant, the said Pyeatt and Vaughan in 1950 subdivided the said lands into 23 lots known as “Lakewood Addition”, and omitted all restrictions on two of the lots. Pyeatt and Vaughan then sold some of the 23 lots to other parties, who are co-plaintiffs with Pyeatt and Vaughan in this suit.

On October 13, 1952, Pyeatt and Vaughan and the other owners of lots in Lakewood Addition filed this present suit against Linder claiming: (a) that the restrictive covenant contained in the deed from Lakeside to Linder, and also in the deed from Lakeside to Pyeatt and Vaughan, was ambiguous and void; (b) that the said restrictive covenant was arbitrary, unreasonable and void; and (c) that the said restrictive covenant worked an undue hardship and should be declared void due to changed conditions. Linder resisted the complaint on all points, but the Chancery Court granted the prayed relief; and Linder has appealed.

I. Parol Testimony To Explain The Restrictive Covenant. The cases uniformly hold (a) that when the language of the restrictive covenant is clear and unambiguous, the parties will be confined to the meaning of the language employed; and (b) that if the language is plain and unambiguous, it is unnecessary and improper to inquire into the surrounding circumstances or the objects and purposes of the restriction for aid in its construction, because when the language is clear and unambiguous it needs no evidence to explain it. Some of the cases so holding are Highland Realty Co. v. Groves, 130 Ky. 374, 113 S. W. 420; Porter v. Johnson, 232 Mo. App. 1150, 115 S. W. 2d 529; Hilsinger v. Schwartz, 99 N. J. Eq. 288, 133 Atl. 184; Moore v. Kimball, 291 Mich. 455, 289 N. W. 213; and Woodward v. Carey, 321 Mich. 163, 32 N. W. 2d 428. Other cases sustaining the rule may be found in 26 C. J. S. 518.

On the theory that the language used in the restrictive covenant here involved was ambiguous, the Chancery Court allowed the plaintiffs to introduce oral evidence relating to the circumstances existing and conversations between the parties at the time when Lakeside conveyed to Linder the land East of the center line of the Lake, and also when Lakeside conveyed to Pyeatt and Vaughan the land West of the center line of the Lake. We hold that the language in the restrictive covenant was plain and unambiguous and that the said testimony, as to the circumstances and conversations, should, not have been received. Lakeside agreed with Linder that Lakeside would subdivide “the property we now own on the West side of Lake Doniphan into six building lots . . .” That language is about as clear as the English language can be made. It referred to the entire tract and not merely the part fronting on the Lake. When the restrictive covenant said “into six building lots ’ ’ it meant six, and could not be understood to mean not less than six building lots. When Pyeatt and Vaughan received their deed from Lakeside it contained the same clear, unambiguous language in the restrictive covenant. Thus there was no ambiguity to be explained; and the Chancery Court was in error in allowing oral evidence to be introduced which in effect sought to vary or contradict the clear and unambiguous language.

II. The Restriction As Arbitrary. The plaintiffs argue that the restrictive covenant was arbitrary and void; and they cite our case of City of Little Rock v. Joyner, 212 Ark. 508, 206 S. W. 2d 446, in which we quoted the rule as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
264 S.W.2d 619, 222 Ark. 949, 1954 Ark. LEXIS 805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/linder-corp-v-pyeatt-ark-1954.