Overbagh v. Patrie

8 Barb. 28, 4 How. Pr. 394
New York Supreme Court·Decided February 4, 1850·Published·Cited by 18 cases

Opinion

By the Court, Parker, J.

By the indenture in question, Isaac D. Yerplanck reserved the*right to receive, and the lessees promised to pay one-sixth part of the purchase money, whenever the premises should be sold by the lessees, their heirs or assigns. He also reserved a pre-emption right to the property, at a deduction of one-sixth of its price or value. The plaintiff claimed at the trial, to recover, on the ground that the property had been twice sold without paying over the 11 sixth sale” reserved ; and that in both instances the sales had been made without having first offered to sell the farm to the lessor on the terms prescribed in the lease.. If these were valid conditions, the forfeiture was incurred and the plaintiffs had a right to re-enter.

I think the only question here presented is, whether the sixth sale reservation was valid. The forfeiture of one-sixth of the purchase money was to be incurred whether the sale was made to the lessor or to a third person. The lessees could not therefore comply with the conditions of the lease, by first offering to sell for a reasonable price to the lessor; they were required to go further, and to submit to a sale to him for five-sixths of the value. If, therefore, the reservation of the sixth sale was in[33] valid, it follows that the right of pre-emption on such a condition was also void.

The question is an important one. Reservations of this description, generally known as “ quarter sales,” “ sixth sales,” and “ tenth sales,”- have been frequently made in perpetual leases in fee. The legal title to hundreds of farms now depends upon their validity; and though it may be true that forfeitures for a breach of such conditions have been rarely enforced, the question involved is none the less important in principle. It is perhaps because the claim to the quarter sale has been generally compromised for a small sum, much less than the cost of testing its validity, that this question has been so rarely, if ever, brought before the courts of this state for examination. It is claimed, on the part of the plaintiffs, that this question has been decided in the late supreme court of this state. If so, we are bound by such authority, and shall not have occasion to discuss the principle. It is important, therefore, that we first ascertain whether it is an open question.

The case principally relied on by the plaintiffs, is Jackson v. Schutz, (18 John. 174.) That, like this, was an action of ejectment to recover possession for an alledged forfeiture of the conditions of a perpetual lease. In addition to the reservation of an annual rent, it was provided that in case the party of the second part was minded to sell the farm, he should first offer the pre-emption to the party of the first part; and that the party of the second part should not sell without leave first obtained from the party of the first part,-under his hand and seal, and on every such sale so obtained, was to pay to the latter a tenth part of the money for which said farm should be sold. The lessee assigned the lease and premises without any license from the lessors, and without offering the pre-emption and refusal to them, or paying them the one-tenth of the price of such assignment. A verdict was taken for the plaintiff by consent, subject to the opinion of the supreme court, which gave judgment for the plaintiff. The judges, however, assigned different reasons for their respective opinions. Mr. Justice Platt placed his decision upqn the ground that all the violated conditions were lawful, [34] and held that a reservation of a tenth sale was valid. Chief Justice Spencer said he thought the plaintiff was entitled to judgment “ on the ground that the condition giving the lessor a right of pre-emption is a lawful condition ; and not having been complied with, the forfeiture had been incurred.” And he added, “that on the other parts of the case it was not necessary, nor did he mean to express any opinion.” No doubt has been entertained of the correctness of the judgment rendered in that case, because the condition giving the right of pre-emption was lawful. It was not necessary that the court should go further and express an opinion upon the validity of the other conditions, nor did they do so. I think it clear, therefore, that the reason assigned by Mr. Justice Platt was his own opinion only, and not the opinion of the court. This case last cited is the only one I have found in the reports of this state, where any judge has discussed, or expressed an opinion upon, the validity of such a reservation in a lease in fee. In all the other cases, the question has arisen on leases for lives or for years.

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Overbagh v. Patrie, 8 Barb. 28, 4 How. Pr. 394 (N.Y. Super. Ct. 1850).

8 Barb. 28 (Overbagh v. Patrie) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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