Pulliam v. Wiggins

580 S.W.2d 228, 1978 Ky. App. LEXIS 674
CourtKentucky Supreme Court
DecidedDecember 1, 1978
StatusPublished
Cited by8 cases

This text of 580 S.W.2d 228 (Pulliam v. Wiggins) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pulliam v. Wiggins, 580 S.W.2d 228, 1978 Ky. App. LEXIS 674 (Ky. 1978).

Opinion

LESTER, Judge.

This is an appeal from the denial of a permanent injunction by which plaintiff-appellant sought to prohibit defendants-appel-lees from leasing or selling land in.a shopping center upon which there was to be a competing business maintained.

Sometime prior to 1967, Royce C. Pulliam attempted to buy a plot of land at the intersection of Lancaster Avenue and Richmond By-Pass Road in Richmond, Kentucky, from Earl B. Baker, the latter party then commencing development of his twenty acre plus tract. Before the transaction [229]*229could be made, Baker found himself in financial difficulties, so he sold the property to a partnership which had as its trustees and operating managers the appellees, Wiggins and Rozen. It was Pulliam’s intention to install and operate a Frisch’s Big Boy drive-in restaurant facing on Lancaster Avenue at a point where it intersected with the By-Pass Road.

In their representative capacity and as part owners, Wiggins and Rozen started planning and later developing upon the Baker property what was to become known as University Center which, as a practical matter, was a shopping center. Pulliam leased the necessary ground from appellees on November 11, 1967, which was prior to any shopping center construction. Appellant drafted the lease. In order to get financing for his drive-in, appellant assigned his lease and mortgaged his improvements to the National Bank of Cynthiana.

The partnership, for whom appellees were trustees, which owned the shopping center consisted of, among others, Wiggins, Rosen, John Sword, Stanley Wylie, Ila Wylie, R. C. Tussey and two or more corporations. On May 4,1970, appellees, in their trustee capacity, deeded the land upon which appellant’s restaurant was situated to Stanley Wylie, Ila Wiley and R. C. Tus-sey, which conveyance was subject to appellant’s lease. Some four and a half years later, on November 13,1974, the Wylies and Tusseys conveyed the ground to Pulliam, with a portion of the deed providing that:

This property is subject (a) To the leasehold estate granted by first parties to Royce C. Pulliam by lease dated November 11, 1967 and recorded in Lease Book 11, Page 67, Madison County Court Clerk’s Office.

When appellant drafted his lease in 1967, he inserted as clause 17 a restriction to the effect:

17. Restrictions. It is understood and agreed that the Lessee is to build a drive-in restaurant of the Frisch’s Big Boy type and the Lessors agree and covenant that neither they, their heirs, assigns or nominees shall lease, assign or sell any other property owned by the Lessors and purchased from Earl B. Baker et al located on the Lancaster Road or Eastern ByPass in Richmond, Kentucky, for a similar type business. Lessors reserve the right to not more than one McDonald type restaurant on all of said property and to have other restaurants with inside service, provided that same shall be located in the shopping center proper.

Not long after Pulliam acquired title to his property he received the following letter, dated May 29, 1975, from Wiggins:

May 29, 1975
Hon. Royce C. Pulliam
Attorney at Law
Elks Building
Cynthiana, Kentucky 41031
Dear Royce:
Morris Rozen and I, as co-trustees, are in the process of completing a Lease Agreement under which we will lease the lot between Long John Silver’s and the Self-Service Gas Station for use as a “Bonanza Steak House”. This will be a restaurant operation with inside service and not a drive-in or carry-out type food operation.
Under the proposed Lease Agreement with these new tenants, we will pay a substantial part of, if not all of, the improvements to be constructed upon the demised property. It is our opinion that construction cost will greatly increase in the next few months and in order to avoid this increase we must proceed with construction within the next few days.
My purpose in writing this letter to you is to make you aware of our intentions as mentioned above so that if you believe we do not have the legal right to enter into this most advantageous lease you can immediately institute legal proceedings against us. Not hearing from you within the next ten days we will assume that you do not legally contest our right to make said lease, and we will act accordingly.
To make our position clear to you, we are sure that the restrictions in the lease we at one time had with you would not [230]*230prohibit us from leasing our property for a restaurant catering to inside service. Furthermore, assuming such a restrictive covenant in a lease could be enforced in the face of recent anti-trust monopoly cases, it is our information that you have now purchased the property we formerly leased to you thereby causing a merger of the leasehold estate into the fee simple estate thereby eliminating the burdens and benefits of the Lease Agreement.
Please understand that our position in this matter is unyielding short of a Court Judgment, and that any delay would cause us great economic loss for which we would seek recovery.
Very truly yours,
/s/ Eugene S. Wiggins
ESW/js
cc: Morris Rozen
Dwight Groeman

Appellant replied that he thought there was “a definite question of appellee’s right to build another free standing restaurant” in the shopping center, so on October 24, 1975, he filed his complaint in the Madison Circuit Court which had as its basis, clause 17 of the 1967 lease.

The trial court sustained the defendants-appellees’ motion for summary judgment and in its entry held that the lease, a certain agreement between the parties of May, 1969, and the deed all merged into the fee grant instrument and that the particular restrictions sought to be retained were null-ities because there was no express reservation thereof. The court defined “shopping center proper” and found that the Bonanza Steakhouse was within the geographical ambit of the center. The court further determined that the Bonanza lessees were necessary parties.

The first assignment of error is the trial court’s application of the doctrine of merger. Under that theory of law, the lower tribunal determined that when appellant acquired the fee simple title to the Frisch’s Big Boy site that the provisions of the 1967 lease were merged therein and thus became nullities.

The theory of merger of estates arose out of the rule in Shelley's Case, 1 Co. 93b (1579-81) and has long been recognized in this jurisdiction. Logan v. Steele, 7 T.B.M. 101 (1828). One of the most succinct statements of the doctrine is found in Larmon v. Larmon, 173 Ky. 477, 191 S.W. 110, 112 (1917) quoting from Blackstone to the effect that:

“Whenever a greater estate and a less coincide and meet in one and the same person, without any intermediate estate, the less is immediately annihilated; or, in the law phrase, it is said to be merged, that is, sunk or drowned in the greater.

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Cite This Page — Counsel Stack

Bluebook (online)
580 S.W.2d 228, 1978 Ky. App. LEXIS 674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pulliam-v-wiggins-ky-1978.