Orange & Rockland Utilities, Inc. v. Philwold Estates, Inc.

418 N.E.2d 1310, 52 N.Y.2d 253, 437 N.Y.S.2d 291, 1981 N.Y. LEXIS 2121
CourtNew York Court of Appeals
DecidedFebruary 24, 1981
StatusPublished
Cited by86 cases

This text of 418 N.E.2d 1310 (Orange & Rockland Utilities, Inc. v. Philwold Estates, Inc.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orange & Rockland Utilities, Inc. v. Philwold Estates, Inc., 418 N.E.2d 1310, 52 N.Y.2d 253, 437 N.Y.S.2d 291, 1981 N.Y. LEXIS 2121 (N.Y. 1981).

Opinion

OPINION OF THE COURT

Meyer, J.

Interpreted in light of the setting in which imposed and the language used, the restrictive covenant in plaintiffs’ predecessor’s deed limiting use of its land to erection of a hydroelectric plant ran with the land as to both benefit and burden. Because that covenant renders the land wholly useless under present circumstances, plaintiffs are however, entitled to judgment extinguishing the covenant pursuant to section 1951 of the Real Property Actions and Proceedings Law. Damage to the dominant land not having been shown, the judgment of extinguishment properly awarded defendant no damages. However, the judgment improperly reserved for future determination the issue of damages to an easement over the servient land also held by the owner of the dominant land. Plaintiffs have not sought extinguishment of the easement and defendant, as easement owner, as distinct from landowner, is not entitled to damages for extinguishment of the restrictive covenant. The order of the Appellate Division should, therefore, be modified by deleting therefrom so much thereof as preserved the right of defendant hereafter to seek damages for extinguish[259]*259ment of the covenant.1 As so modified, the order should be affirmed.

William Bradford originally owned land on both sides of the Neversink River in Sullivan County. In 1923 he sold the east bank land to Alfred J. Crane, retaining for himself exclusive hunting and fishing rights over it. At the same time he sold part of the west bank land to Crane under a deed restricting its use “by [Crane] his heirs, executors and assigns solely for the erection of Hydroelectric and generating plants and appurtenances, transmission lines, dams, penstocks, conduits or other structures appurtenant to the proper development and utilization of the water power of the portion of the Neversink River and Bushkill Creek above described or other water power uses and purposes, including houses for employees” but reserved to himself exclusive hunting and fishing rights over that part of the west bank land conveyed. In 1927 Crane conveyed the restricted property, subject to the covenant, to Rockland Light and Power Company, now known as Orange and Rockland Utilities, Inc. That company and Clove Development Corporation, its wholly owned subsidiary which now holds title to the west bank property originally deeded to Crane, are the plaintiffs in this action.

Bradford continued to hold the remaining west bank land, contiguous to the restricted parcel transferred to Crane. Bradford died in 1934 and in 1940 that property was conveyed by his successors in interest, ultimately coming to be held by Philwold Estates, Inc.2 Philwold Estates, Inc., was owned by Philwold Company, a partnership in which defendant Wechsler had an interest. In 1968 Wechs[260]*260ler withdrew from the partnership receiving for his interest in that company 2,325 acres of the west bank land that had been held by Philwold Estates, Inc., together with the hunting and fishing rights in the land deeded by Bradford to Crane which Bradford had reserved.

Plaintiffs’ complaint seeks judgment declaring that the restrictive covenant was personal to Bradford and, therefore, is not enforceable by the successors to Bradford’s other real property, or in the alternative that the restrictive covenant be extinguished pursuant to section 1951 of the Real Property Actions and Proceedings Law. Special Term dismissed the action, without reaching the merits, holding it barred by limitations and rejecting plaintiffs’ argument that the statute was tolled because plaintiffs had possession and undisputed title to the property.

The Statute of Limitations defense was, however, swept aside by the Appellate Division because plaintiffs’ title to the property was unchallenged, the dispute involving only the enforceability of the restrictive covenant. The court held that the covenant ran with the land and was, therefore, enforceable by defendant, but concluded that it should be extinguished because it found, for reasons hereafter detailed, that the covenant currently serves no purpose and renders plaintiffs’ land valueless. Concluding that defendant had failed to prove any damage resulting from the extinguishment of the easement, the Appellate Division awarded no damages, but provided that defendant could seek damages for any injury to his land which might occur in the future as a result of the extinguishment of the restrictive covenant.

We agree (1) that the action is not barred by limitations or laches, (2) that the benefit as well as the burden of the covenant runs with the land, (3) that the Appellate Division properly concluded that the covenant should be extinguished pursuant to section 1951 of the Real Property Actions and Proceedings Law, and (4) that defendant’s proof did not entitle him to damages for ex-tinguishment of the covenant. We disagree, however, with the Appellate Division’s reservation to defendant of the right to seek future damages as a result of the extinguish[261]*261ment of the covenant and conclude that, the hunting and fishing easement not being involved in this action, the only-right that defendant Wechsler retains is to enforce such easement rights as he has should there be a future interference with his reasonable enjoyment of the easement,

I

Plaintiffs, as record owners of the property subject to the restriction, seek removal of the restriction either because it was personal to Bradford and did not accrue to later titleholders of the dominant land or because, if it did, circumstances are now such as to permit them to invoke the extinguishment provisions of section 1951 of the Real Property Actions and Proceedings Law. The restriction, as distinct from the hunting and fishing easement which is not involved in this action, gave neither Bradford nor any successor in title of his any right to go upon the servient or restricted land. At best it entitled him or them to enjoin plaintiffs from using the restricted land for a purpose outside the scope of the restriction.

Plaintiffs, as the holder of legal title, were presumptively entitled to possession (see RPAPL, § 311) and with respect to one in defendant’s position, who neither claims nor exercises any possessory right to the land, should be treated no differently as to limitations than one who is actually in possession. Considered in this light, removal of the restriction is no different than removal of a cloud on title, as to which the law is well settled that the “right is never barred by the Statute of Limitations. It is a continuing right which exists as long as there is an occasion for its exercise” (Ford v Clendenin, 215 NY 10, 16; see Gifford v Whittemore, 4 AD2d 379, 385). The purpose of a Statute of Limitations is to put an end to stale claims, not to compel resort to the courts to vindicate rights which have not been and might never be called into question. The requirement of prompt action is imposed as a policy matter upon persons who would challenge title to property rather than those who seek to quiet title to their land. Accordingly, we conclude, as did the Appellate Division, that neither aspect of the action is time barred. We agree also, for the reason [262]*262stated by the Appellate Division, that laches could not bar the action.

II

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Bluebook (online)
418 N.E.2d 1310, 52 N.Y.2d 253, 437 N.Y.S.2d 291, 1981 N.Y. LEXIS 2121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orange-rockland-utilities-inc-v-philwold-estates-inc-ny-1981.