Morrill Realty Corp. v. Rayon Holding Corp.

135 Misc. 845, 240 N.Y.S. 38, 1930 N.Y. Misc. LEXIS 1028
CourtNew York Supreme Court
DecidedFebruary 13, 1930
StatusPublished
Cited by2 cases

This text of 135 Misc. 845 (Morrill Realty Corp. v. Rayon Holding Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morrill Realty Corp. v. Rayon Holding Corp., 135 Misc. 845, 240 N.Y.S. 38, 1930 N.Y. Misc. LEXIS 1028 (N.Y. Super. Ct. 1930).

Opinion

Sherman, J.

The question presented is whether plaintiff was justified in rejecting at a closing the title to premises comprising the block fronting on the westerly side of Madison avenue between Thirty-sixth and Thirty-seventh streets in the borough of Manhattan, known as Nos. 218-230 Madison avenue and 16-18 East Thirty-seventh street. The contract of sale expressly states that the plaintiff was acquiring the premises for the purpose of constructing a business building. .

The premises now consist of dwelling houses erected for residential purposes. The contract enumerates certain agreements and covenants subject to which title is to be conveyed. The well-known Murray Hill restrictive covenant of February 22, 1847, is not among them. It does mention, however, a so-called Paine covenant, which the seller expressly agreed had been merged and extinguished when the premises came into its conceded common ownership. Finally the seller covenanted that the entire parcel was legally included within the retail zone district as established by the board of estimate and apportionment of the city of New York on April 18, 1929, and might be used thereunder for business purposes.

Plaintiff places its rejection upon the grounds: First, that the premises are subject to the Murray Hill covenant; second, that the Paine covenant is in effect and prevents the erection of a large business structure, and finally that the premises are not legally embraced within the retail district zone. It demands the return of the earnest money and the search expense. Defendant by its counterclaim asks judgment of specific performance.

[847]*847In a suit brought by the owner of lots on the southwest corner of Madison avenue and Thirty-eighth street the language of the Murray Hill covenant dated February 22, 1847, was construed (Schoonmaker v. Heckscher, 171 App. Div. l48, 149), and it was held that lots on the west side of Madison avenue were not subject to that covenant. This decision was affirmed in the Court of Appeals (Schoonmaker v. Heckscher, 218 N. Y. 722). In that case the complaint as orally amended was dismissed at trial upon counsel’s opening.

Plaintiff here asserts that this decision held merely that Hecksher’s property was not subject to the agreement; that the language of the opinions was obiter and that the decision is not to be viewed as determining the status of the property here in suit; that the covenant must be re-examined and any ambiguity now resolved in the light of evidence here produced (but not before the court in Schoonmaker v. Heckscher) of numerous deeds in the chain of title which charge this property with the restrictions of that covenant, as well as other evidence said to show the intent of defendant’s then predecessor in title to include these premises within the scope of that agreement. It is further contended that defendant Hecksher’s answer showed that his predecessor in title at the date of the Murray Hill covenant was (unlike defendant’s predecessor in title here) a stranger to the agreement and that in Hecksher’s chain of title there was no reference to the agreement. The court in that action was not concerned with the allegations of Hecksher’s answer, for the complaint was dismissed by reason of its own averments — not those of the answer.

The text of the Murray Hill restrictive covenant was before the court, and the holding was broadly to the effect that it did not cover lands on the westerly side of Madison avenue. That judgment could not have been reached if the court had been willing to construe the covenant, as now demanded by plaintiff here. An examination of the evidence in this case, if it had been before the court n that case, must have led to the same result.

There is no question but that lands abutting on the westerly side of Madison avenue must now be regarded as not within the restricted area. The statement in subsequent deeds in the chain of title that the property here in suit was conveyed subject to this restriction does not place the land under the yoke of the restriction where the covenant itself by its terms did not do so. (Korn v. Campbell, 119 App. Div. 401; affd., 192 N. Y. 490; Title Guarantee & Trust Co. v. Fallon, 101 App. Div. 187; Matter of Oakes, 248 N. Y. 280, 284.) The so-called Paine covenant of January 17, 1853, was between John R. Murray and John Paine. By it the [848]*848grantor and grantee owning several lots on the west side of Madison avenue between Thirty-sixth and Thirty-seventh streets agreed that they would erect upon such lots within forty feet of the Madison avenue line only dwelling houses twenty-five feet in width. The covenant was to run with the land, and a like covenant was to be inserted in future deeds of conveyance. Plaintiff does not dispute that these lots have been gathered into one ownership, nor that thereby the restriction would be extinguished, but it asserts that because Murray owned other parcels in the immediate neighborhood at the time when the covenant was made he must be held to have intended to benefit those parcels by these restrictions, and that under those circumstances the present owners of such neighboring parcels have what is called a “ negative easement in the Madison avenue front, which would enable them to enforce the Paine covenant.

There is no merit in this contention. The agreement by its terms was operative solely between adjoining owners and the fact that one of the contracting parties owned lots on Park avenue and may have been interested in maintaining the entire Murray Hill area as a residential district cannot extend the operation of the instrument which designates the precise property to be affected by its terms. It was a covenant applying only to. the parcels therein mentioned for their reciprocal benefit. Restrictive covenants may not be enlarged by construction. The rule of interpretation is distinctly to the contrary. The natural right to the full, free and untrammeled use of property is favored. (Schoonmaker v. Hecksher, supra.)

The remaining question is whether or not these lands are legally within the retail district as established by the board of estimate and apportionment on April 18, 1929. The court has had the benefit of briefs filed by the corporation counsel and by attorneys for various associations of property owners (which had supported the establishment of the retail district), whose attorneys have been accorded the privilege of submitting their views as amici curies. It is-unnecessary to refer in detail to all of the proposals before the board of estimate since the inception in 1916 of the general zoning movement.

There can be no doubt that the municipal authorities may adopt as a proper exercise of police power, resolutions which limit the use of lands. (Lincoln Trust Co. v. Williams Building Corp., 229 N. Y. 313.) On July 25, 1916, the board of estimate and apportionment of the city of New York, sitting as a committee of the whole, adopted the Building Zone Resolution. Under that resolution there was established, among other things, a map showing allowable uses. [849]*849This use map indicated three kinds of districts, i. 6., residence, business and unrestricted districts.

The property involved in this suit was located within the boundaries of the residence district. The zoning resolution also made provision for amendments and changes in the district lines (§ 24).

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Related

Wright v. Brooks
30 Misc. 2d 710 (New York Supreme Court, 1961)
Morrill Realty Corp. v. Rayon Holding Corp.
229 A.D. 760 (Appellate Division of the Supreme Court of New York, 1930)

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Bluebook (online)
135 Misc. 845, 240 N.Y.S. 38, 1930 N.Y. Misc. LEXIS 1028, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morrill-realty-corp-v-rayon-holding-corp-nysupct-1930.