Sailer v. Podolski

88 A. 967, 82 N.J. Eq. 459, 1913 N.J. Ch. LEXIS 25
New Jersey Court of Chancery·Decided October 29, 1913·Published·Cited by 13 cases

Opinion

Leaming, V. C.

The restrictive building covenants which this suit seeks to enforce are quoted in Sailer v. Podolski, 81 N. J. Eq. (11 Buch.) 327. That preliminary hearing proceeded upon the then uncontroverted assumption that these covenants formed a part of a general scheme for the development of the tract; for that reason complainant’s right to enforce the covenants was not then questioned.

The proofs taken at final hearing disclose that these covenants cannot be sustained and enforced upon the theory of a general scheme of development.

In the year 1901 Petrol? and Newton owned a wild tract of land and laid it out into thirty-three building lots for the purpose of making sale of the lots. Streets were by them projected on three sides of the property and a street projected through it; in this manner street fronts were provided for all the lots. All of these lots have since been sold. The conveyance from these common owners to defendant’s predecessor in title was dated December 16fch, 1901, and contained the restrictive cove-' nants referred to. The conveyance from the common owners to complainant’s predecessor in title was dated May 19th, 1902, and contained similar covenants. When this conveyance was made by the common grantors to complainant’s predecessor in title seventeen of the lots had been conveyed by the common grantors by deeds containing restrictive covenants and seven without restrictive covenants. A month .later the remaining eight lots were conveyed by the common grantors without restrictive covenants. It thus appears that in a tract comprising thirty-three lots eighteen lots were conveyed by deeds with restrictive covenants and fifteen without; and at the time of the purchase by complainant’s predecessor in title seven lots had been conveyed free from restrictions. When complainant purchased from her predecessor in title fifteen, or nearly one-half of all the lots comprising the tract, had been conveyed by the common grantors free from the operation of restrictive covenants. It seems clearly impossible to regard an enterprise which has been developed in the manner stated as one embracing the necessary elements of a general scheme or plan to sub[462]*462ject the several lots of the tract to the operation of uniform restrictions. The elements necessary to render a general scheme operative to bestow upon each lot owner the right to enforce the restrictions against all other lot owners are clearly defined in De Gray v. Monmouth Beach, 50 N. J. Eq. (5 Dick.) 329, 340.

It is urged that as the lots of complainant and defendant face on Atlantic avenue, and all of the six lots facing on that avenue are subjected to the same restrictive covenants as are found in the deeds of complainant and defendant, the conclusion is justified that that part of the tract was subjected to a general scheme of development which failed only as to the remainder of the tract. I am unable to adopt that view. There is nothing to' indicate that any defined purpose existed or was recognized in relation to any segregated portion of the tract different from the other portions of the tract except the mere circumstance that the deeds for these six lots facing on Atlantic avenue are now found to have contained the restrictive covenants.

As complainant’s right to enforce defendant’s covenants cannot be sustained as a right emanating from a general scheme of development, it follows that it can only be sustained upon the claim that defendant’s covenant was entered into for the benefit of subsequent owners of the lot subsequently conveyed by the common grantors to complainant’s predecessor in title and thereafter conveyed to complainant. The deed from the common grantors to defendant’s predecessor in title was dated December 16th, 1901; the deed from the common grantors to complainant’s predecessor in title was dated May 19th, 1902. In Hemsley v. Marlborough Hotel Co., 62 N. J. Eq. (17 Dick.) 164, 170; affirmed in 63 N. J. Eq. (18 Dick.) 804, it is held that in a case of the nature stated the burden rests upon complainant to establish that the covenant was made by the prior grantee of the common grantor for the benefit of the subsequent purchasers of the lot owned by complainant. In McNichol v. Townsend, 73 N. J. Eq. (3 Buch.) 276, Hemsley v. Marlborough Hotel Co., supra, was followed, and it is there also pointed out that no presumption arises from such a covenant that it is for the benefit of subsequent purchasers of the remaining land of the common grantor, and that in the affirmance of Rendís v. [463]*463Cowlishaw, reported in 11 Ch. Div. 866, 868, it is stated that to enable the subsequent purchaser to take the benefit of restrictive covenants of a prior purchase, there must be something in the deed containing the covenants to define the property for the benefit of which the covenants wore entered into. The covenants contained in the deed of conveyance from the common grantors to defendant’s predecessor in title are solely covenants of the grantee; grantors neither bind themselves to enforce or perpetuate the covenants against their grantee and his assigns nor to create or enforce similar or any covenants against subsequent purchasers of other parts of their land,, nor do the covenants in any way state that they are for the benefit of subsequent purchasers of all or any part of the unsold lots of grantors ; the covenants are in form purely personal covenants of the grantee to his grantors, restricting the manner in which the grantee should use the land granted. If these covenants were intended by the parties to embody stipulations which were not expressed, if they were intended by the parties to include by implication the stipulation that they were for the benefit of the purchasers of all dr some particular portion of the unsold lots of the grantors, or were to be enforceable at the instance of subsequent grantees of remaining lots, the accurate ascertainment of that intention is clearly necessary to clothe the subsequent purchaser with the right of enforcement of the covenants. This has been the view uniformly accepted by the courts of this state from Coudert v. Sayre. 46 N. J. Eq. (1 Dick.) 386, and De Gray v. Monmouth Beach, 50 N. J. Eq. (5 Dick.) 329, to the present time.

Where the restrictive covenant of the prior purchaser expressly provides that it is intended for the benefit of subsequent purchasers of the remaining land of the common grantor or so declares by providing that it may be Enforced by such subsequent purchasers, it may be enforced by such subsequent purchasers against such prior purchasers. This is clearly pointed out in Coudert v. Sayre, 46 N. J. Eq. (1 Dick.) 386, 392, and has been at all times uniformly recognized as the settled law of this state.

And where a general building or development scheme has [464]*464been adopted by the common owner and perpetuated through the medium of uniform restrictive covenants in all deeds made by such common owner, each purchaser may enforce the uniform covenants against all other purchasers irrespective of the time of order of their respective purchasers, because such a general scheme can only exist as such by reason of its necessary comprehension of the plan to subject the entire tract to the operation'of the uniform covenants.

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Sailer v. Podolski, 88 A. 967, 82 N.J. Eq. 459, 1913 N.J. Ch. LEXIS 25 (N.J. Ct. App. 1913).

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