Streets v. J M Land & Developing Co.

898 P.2d 377, 1995 Wyo. LEXIS 110, 1995 WL 380905
CourtWyoming Supreme Court
DecidedJune 28, 1995
Docket94-44
StatusPublished
Cited by13 cases

This text of 898 P.2d 377 (Streets v. J M Land & Developing Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Streets v. J M Land & Developing Co., 898 P.2d 377, 1995 Wyo. LEXIS 110, 1995 WL 380905 (Wyo. 1995).

Opinions

THOMAS, Justice.

The only issue in this ease is: Can a purchaser of land under a contract for deed impose restrictive covenants on that land which can be enforced against subsequent purchasers with notice? The trial court adopted the contract theory of enforcement of restrictive covenants in equity, and it entered an injunction against Susan Streets (Streets) and James Keiderling (Keiderling) to enforce certain provisions of restrictive covenants imposed on a tract of land by J M Land & Developing Co. (J M) by recordation in the office of the Campbell County Clerk. J M was a purchaser under a contract for deed at the time the restrictive covenants were recorded. Streets and Keiderling contended restrictive covenants could only be imposed by the owner of the legal title, and covenants recorded by the owner of an equitable title are invalid. We hold the restrictive covenants recorded by J M are enforceable as equitable servitudes against Streets, a purchaser with notice of the covenants, and Keiderling, her tenant. We affirm the Order for Permanent Injunction entered by the district court.

Streets and Keiderling, in the Brief of Appellants, state the issue to be:

[378]*378I. Can an installment land sale purchaser who holds no legal title to the land burden that land with restrictive covenants.

J M, in its Brief of Appellee, restates the issue in this way:

Whether the District Court erred in finding that the restrictive covenants filed of record on December 12, 1978, are binding and enforceable against the appellants.

The facts in this ease are not in dispute. On May 24, 1977, Ruby Ranch Investments (Ruby Ranch), a partnership formed by Max and Jesse Ruby, purchased 4,708 acres of land from Lowery Land and Livestock Trust (Lowery) by a contract for deed. Notice of the contract for deed was recorded in the office of the Campbell County Clerk on June 3,1977. On August 24,1978, J M, a corporation of which Jesse Ruby was president, purchased the same tract of land from Ruby Ranch Investments also by a contract for deed. Notice of this second contract for deed was recorded on December 12, 1978.

In the meantime, J M executed a document entitled Restrictive Covenants on August 29, 1978. The Restrictive Covenants recognized that J M was the equitable owner of the 4,708 acres and was dividing the land into forty-acre parcels. The Restrictive Covenants stated that J M “makes the following declaration as to limitations, restrictions, and uses to which the said subdivision may be put, hereby specifying that said declarations shall constitute covenants to run with all of the land above described, as provided by law, and shall be binding upon all parties and all persons claiming under them, and for the benefit of and limitation of all future owners in said lands, or present owners consenting thereto by their signatures being affixed thereto.” The Restrictive Covenants were recorded in the office of the Campbell County Clerk on December 12,1978, the same day that the second contract for deed was recorded.

J M did not have legal title at the time the Restrictive Covenants were recorded. On May 24, 1977, Lowery executed a warranty deed to Ruby Ranch, but that deed was not recorded until January 3, 1983. During the intervening period of time, J M sold a number of the subdivided forty-acre tracts to various purchasers. J M never did receive legal title to all 4,708 acres from Ruby Ranch Investments. At the time the complaint in this case was filed, J M did have legal title to approximately 430 acres.

Streets owns a tract of land, consisting of about twenty-two acres, within the 4,708 acres. Twenty acres of land were acquired by Streets by a quitclaim deed from the Federal Deposit Insurance Corporation dated September 21,1988 and recorded September 27, 1988. The additional two acres Streets obtained by a special warranty deed from the Secretary of Housing and Urban Development, which was dated October 5, 1992 and recorded on October 8, 1992. Legal title to the forty-acre parcel that included the land owned by Streets was received by J M pursuant to a warranty deed dated October 8, 1984 and recorded March 20, 1985. Keiderling owns no interest in the property, but he resides on the property owned by Streets.

J M commenced this action by a complaint, filed September 17,1992, naming Streets and Keiderling as defendants and alleging violations of provisions of the Restrictive Covenants. The particular covenants relied upon state:

4. Any livestock, poultry or other animals shall be kept in an area which shall be adequately fenced to keep the same within the owner’s area ⅜ * *.
⅜ ⅜ ⅝ ⅜ ⅝ *
7. All existing roads shall remain for the use of the public, and auto gates shall be supplied at the expense of the lot owner desiring to build a fence across such existing road.

J M sought injunctive relief to prohibit Streets and Keiderling from allowing stock to migrate onto J M’s property and from blocking a roadway running across Streets’ property. The trial court granted a permanent injunction to J M, contingent upon J M obtaining ratification and recordation of the Restrictive Covenants by Ruby Ranch. J M did obtain and record that ratification, and the permanent injunction was entered on [379]*379January 4, 1994. Streets and Keiderling appeal from that order.

The essence of Streets’ position is that the twenty-two acres cannot be burdened at law by restrictive covenants recorded by J M in 1978. At the time the Restrictive Covenants were recorded, J M, the purchaser under a contract for deed, acquired only an equitable title, the legal title still being held by Lowery. J M could not impose restrictive covenants that would run with the land. See cases cited in 20 Am. JuR.2d Covenants, Conditions, and Restrictions § 33, 604 (1965). Streets’ and Keider-ling’s position, however, begs the question resolved by the district court, and we deal in this decision with that issue. We decide for Wyoming that a restrictive covenant imposed by the equitable owner of land can be enforced in an equitable action against a purchaser of land chargeable with notice of the restrictive covenant.

Many of our sister jurisdictions have recognized the distinction between the legal concept of covenants that run with the land and the enforcement in courts of equity of equitable servitudes. See Maurice T. Brunner, Annotation, Who May Enforce Restrictive Covenant or Agreement as to Use of Real Property, 51 A.L.R.3d 556 (1973). In deciding to enforce the Restrictive Covenants, the trial court quoted this proposition from 20 Am. JuR.2d Covenants, Conditions, and Restrictions § 304, 868 (1965):

The general view is that a restrictive covenant is not strictly an easement and does not run with the land in the true sense of that term. Such agreements are, however, enforceable in equity against all those who take the estate with notice of them, although they may not be, strictly speaking, real covenants so as to run with the land or of a nature to create a technical qualification of the title conveyed by the deed. The question is not whether the covenant runs with the land, but whether a party shall be permitted to use the land in a manner inconsistent with the contract entered into by his vendor, and with notice of which he purchased.

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Streets v. J M Land & Developing Co.
898 P.2d 377 (Wyoming Supreme Court, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
898 P.2d 377, 1995 Wyo. LEXIS 110, 1995 WL 380905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/streets-v-j-m-land-developing-co-wyo-1995.