Ouachita Home Site & Realty Co. v. Collie

179 So. 841, 189 La. 521, 1938 La. LEXIS 1202
CourtSupreme Court of Louisiana
DecidedMarch 7, 1938
DocketNo. 34720.
StatusPublished
Cited by30 cases

This text of 179 So. 841 (Ouachita Home Site & Realty Co. v. Collie) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ouachita Home Site & Realty Co. v. Collie, 179 So. 841, 189 La. 521, 1938 La. LEXIS 1202 (La. 1938).

Opinion

ROGERS, Justice.

In August, 1923, Eugene Ford sold to the Ouachita Home Site & Realty Company, Inc., 129 acres of land situated north of Desiard street and east of the Monroe-Sterlington road, in the city of Monroe. Later, the purchaser, Ouachita Home Site & Realty Company, Inc., established a residential subdivision on the property. This subdivision was given the-name “Cole Addition to *523 the City of Monroe,” and from time to time a number of lots were sold therein. Among the purchasers was Mrs. Nellie S. Williams, who, by deed executed on February 7, 1928, acquired lots 3, 4, 5, and 8 of block 42 of the subdivision. In this deed, the vendor Ouachita Home Site & Realty Company, Inc., inserted the following building restrictions, which were accepted by the vendee, viz.:

“The vendee herein agrees, binds and obligates herself, her heirs and assigns to construct or erect on the above described property nothing other than a residence or residences, together with the usual and necessary appurtenances thereunto belonging and further agrees, binds and obligates herself, her heirs and assigns to erect no residence on said property at a cost of less than Three Thousand ($3,000.00) Dollars.”

On February 10, 1934, Mrs. Williams sold the property to the Central Company, Inc., and by two deeds dated July 8, 1937, the Central Company, Inc., sold lots 3, 4, and 5 to F. U. Collie. No building restrictions were embodied in the deeds from the Central Company, Inc., to Collie.

On September 13, 1937, F. U. Collie obtained a building permit from the city of Monroe to erect twelve tourist cabins on the property, two of the cabins to cost $500 each and the other ten cabins to cost $400 each, and pursuant to this permit entered into a contract with J. F. Heard to build the cabins.

When the contractor began to lay out the tourist camp and to break ground for its construction, Mr. Collie, the owner of the property, was notified by the Ouachita Home Site & Realty Company, Inc., through its attorney, that a tourist camp was a commercial enterprise, the operation of which was prohibited by the building restrictions governing the subdivision, and he was called upon to abandon the construction thereof. This Mr. Collie refused to do, and this suit followed.

Plaintiff in its petition set out the facts, alleged the validity of the building restrictions, and prayed for an injunction to prohibit the defendants, Collie, as owner, and Heard, as contractor, from violating them.

The defendants, in their exceptions and answers, set up various grounds of defense to plaintiff’s action. They averred that the building restrictions relied on by plaintiff were not valid and were not a covenant running with the land; that the defendant Collie had not agreed'to the restrictions, and hence they were not binding on him; and that as the owner of the property he had the right to exercise the full and perfect ownership thereof. Defendants specially alleged that the building restrictions were invalid as being an attempt on plaintiff’s part to establish a trust estate, to take property out of commerce perpetually, and to create a tenure of property unknown to our law. Defendants further pleaded that the piaintiff was estopped from enforcing the building restrictions, because it had abandoned its rights therein, and had permitted the character of the subdivision to be changed from a residential district to a commercial and business district.

After a hearing on a rule nisi on the various pleas and exceptions set up by the defendants, plaintiff’s right to injunctive re *525 lief was recognized and a preliminary injunction was ordered to issue upon plaintiff furnishing the required bond. At the later hearing of the case on its merits the preliminary injunction was made permanent. From that judgment, defendants have appealed.

The case is governed by the decisions of this court in the cases of Queensborough Land Company v. Cazeaux, 136 La. 724, 67 So. 641, 643, L.R.A.1916B, 1201, Ann.Cas.1916D, 1248 and Hill v. Wm. P. Ross, Inc., 166 La. 581, 117 So. 725.

The defenses raised in this case are the same defenses that were raised in the Queensborough Case. In that case, the questions presented were exhaustively considered and the right of an owner to restrict the use of real property was maintained.

In the Queensborough Case, it was expressly held that such restrictions in contracts between individuals are not unlawful in this state; that they are not personal to the vendor, but inure to the benefit of all the other grantees under a general plan of development, are covenants running with the land, and create real, as distinct from personal, obligations. This holding was approved and reaffirmed in the Hill Case. In both cases it was further held that a writ of injunction was the proper remedy to enforce the restrictions.

Defendants- cite the case of Female Orphan Society v. Young Men’s Christian Association, 119 La. 278, 44 So. 15, 12 Ann. Cas. 811, in support of their argument that the building restrictions involved in this case are unreasonable and invalid as creating a tenure of property unknown to our law and contrary to public policy.

But defendants’ argument overlooks the distinction between a restraint upon the use of property and a restraint upon its alien-ability. In the Female Orphan Society Case, the court was dealing with a perpetual restraint to alienate the property, which the court held was an impossibility; whereas in the Queensborough and Hill Cases the court was dealing with a restraint upon the use of the property, which the court held was a possibility. ■ The questions presented in the Female Orphan Society Case were considered in the Queensborough Case and differentiated from the questions presented in that case.

While a condition of perpetual inalienability of real estate under our law is void as putting property out of commerce and contrary to public policy, there is nothing in our law which forbids contracts for the use or nonuse of real estate, provided the use or nonuse of the property be not contrary to good morals or the public welfare. This is clearly recognized in the Queensborough Case, in which the court stated:

“To the second question we answer that, while the public policy of the state opposes the putting of property out of commerce, it at the same time favors the fullest liberty of contract (article 1764, C.C.) and the widest latitude possible in the right to dispose of one’s property as one. lists (article 491, C.C.), so long as no disposition is sought to be made contrary to good morals, public order, or express law.”

*527 In the case of Voinche v. Town of Marksville, 124 La. 712, 50 So. 662, 663, which was also referred to in the Queens-borough Case, this court held to be valid and enforceable a donation 'of property for a particular use. In so holding, and in sustaining plaintiff’s action to annul the donation for a violation of the restriction upon the use of the property, the court said:

“The fact that the grant was in perpetuity does not exclude the particular purpose of the donation, as a perpetual use is perfectly consistent with a perpetual grant.”

And further:

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179 So. 841, 189 La. 521, 1938 La. LEXIS 1202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ouachita-home-site-realty-co-v-collie-la-1938.