Sun Oil Co. v. Trent Auto Wash, Inc.

150 N.W.2d 818, 379 Mich. 182, 1967 Mich. LEXIS 72, 1967 Trade Cas. (CCH) 72,202
CourtMichigan Supreme Court
DecidedJune 6, 1967
DocketCalendar 10, Docket 51,441
StatusPublished
Cited by19 cases

This text of 150 N.W.2d 818 (Sun Oil Co. v. Trent Auto Wash, Inc.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sun Oil Co. v. Trent Auto Wash, Inc., 150 N.W.2d 818, 379 Mich. 182, 1967 Mich. LEXIS 72, 1967 Trade Cas. (CCH) 72,202 (Mich. 1967).

Opinions

Adams, J.

On September 28,1962, Clara Williams gave a warranty deed to Sun Oil Company by which she conveyed to that company two lots. Contained in her deed is the following agreement:

“Grantor agrees that property now owned-by grantor lying north of and adjacent to' the" within described premises shall not be used for or in connection with the operation of a gasoline service station or filling station for the sale of gasoline, motor fuel, petroleum products, automotive accessories or automotive services generally.” (Emphasis added.)

On February 1, 1964, Clara Williams executed a land contract to defendant, Trent Auto Wash, [186]*186Inc. It is admitted that the land contract covered ‘‘that property now owned by grantor lying north of and adjacent to” the lots Clara Williams conveyed to Sun Oil Company. The defendant also “admits that it had knowledge of the alleged covenant; that plaintiff’s agents informed it that plaintiff would attempt to enforce said covenant, and that defendant intends to construct underground storage tanks and above ground pumps,” et cetera.

It is unnecessary to determine whether the above agreement is a covenant running with the land to afford plaintiff the relief it seeks. The agreement relates to the property purchased by Trent Auto Wash and it is equally clear that it was intended for the benefit of the adjacent property of Sun Oil Company. The agreement does not relate to any activities on the part of Clara Williams, but, rather, contemplates a restriction upon the use of property retained by her. Whatever she could not do, chancery may also enjoin those in privity with her and with notice of the restriction from doing.

The principle is stated by the Lord Chancellor in the case of Tulk v. Moxhay (1848), 2 Ph 774 (41 Eng Rep 1143), affirming 11 Beav 571 (50 Eng Rep 937):

“The question does not depend upon whether the covenant runs with the land * * * if there was a mere agreement and no covenant, this court would enforce it against the party purchasing with notice of it; for if an equity is attached to the property by the owner, no one purchasing with notice of that equity can stand in a different situation from the party from whom he purchased.”

The principle of Tulk has been widely recognized and followed in numerous cases. In the case of Langenback v. Mays (1950), 207 Ga 156 (60 SE2d 240), the defendants sold to plaintiffs a small tract of land on which several tourist cabins were located, [187]*187and orally agreed not to nse their remaining land for a tourist camp. The defendants constructed a tourist camp in violation of their contract and, when enjoined from operating it, executed an instrument purporting to he a lease to their daughter for the tourist camp. The daughter operated the business with actual knowledge of the injunction granted against her parents. The supreme court of Georgia’s opinion states:

“Equity will enforce a lawful restrictive agreement concerning land against a person who takes with notice of the contract. In such a case, the person violating the agreement, though not a party to it, is a privy in conscience with the maker. 31 Yale Law Jour 127, 131; Francisco v. Smith, 143 NY 488 (38 NE 980); Rosen v. Wolff, 152 Ga 578 (110 SE 877).”

In the case of Thodos v. Shirk (1956), 248 Iowa 172 (79 NW2d 733), plaintiff, owner of certain lots in a subdivision, brought an action in equity asking that defendants be enjoined from using their property as a trailer court in violation of the restrictive covenant in their deed which provided: “No building shall be placed or erected on said premises except for residence purposes.” The court in discussing the doctrine of equitable servitudes said (p 179):

“Since the doctrine of equitable servitudes rests upon the theory of a servitude imposed upon the land, enforceable against all subsequent purchasers of the land who are charged with notice actual or constructive, the requirement of the special words such as ‘and assigns’ is unnecessary in the deed. The sole test for the running of the burden in equity is the intention of the parties to impose a servitude upon the land as distinguished from a personal promise of the present owner.”

[188]*188In Hodge v. Sloan (1887), 107 NY 244 (17 NE 335), a grantee bound bimself by a covenant in his deed to limit the use of land purchased so as not to interfere with the trade or business of the grantor and the property was subsequently sold to defendant without covenant on his part but with notice of the covenant in the deed to his grantor. The court said (p 250):

“There seems no reason why he and his grantee, taking title with notice of the restriction, should not be equally bound. The contract was good between the original parties, and it should in equity at least bind whoever takes title with notice of such covenant. By reason of it the vendor received less for his land, and the plain and expressed intention of the parties would be defeated if the covenant could not be enforced as well against a purchaser with notice, as against the original covenantor. In order to uphold the liability of the successor in title, it is not necessary that the covenant should be one technically attaching to and concerning the land and so running with the title. It is enough that a purchaser has notice of it.”

In the case of Coomes v. Aero Theatre and Shopping Center, Inc. (1955), 207 Md 432 (114 A2d 631), the complainant and his grantee intended that land should be restricted to uses not in conflict with the use of complainant’s remaining land. The restrictive covenant read:

“Subject also the further restriction that the grantees or their tenants therein will not engage "in any business which shall compete with or be of a similar nature of those businesses conducted and maintained on the property known as the Aero Theatre and Shopping Center, Inc.”

Defendants, who took from plaintiff’s grantee, had notice of the restriction at time of conveyance. The [189]*189restriction was held binding on them. The court, said (p 437):

“We reaffirm the doctrine [the doctrine of Tulk] that if the owner of land enters into a covenant, concerning its use, subjecting it to an easement- or personal servitude, and the land is afterwards conveyed to one who has notice of the covenant, the grantee will take the land bound by the covenant and will be compelled in equity to specifically execute it or will be restrained from violating it; and it makes no difference, with respect to this liability in equity, whether or not the covenant is one which runs with the land. Thruston v. Minke, 32 Md 487, 494; Halle v. Newbold, 69 Md 265, 270 (14 A 662); Newbold v. Peabody Heights Co., 70 Md 493 (17 A 372, 3 LRA 579); Peabody Heights Co. of Baltimore City v. Willson, 82 Md 186 (32 A 386, 1077, 36 LRA 393); Clem v. Valentine, 155 Md 19 (141 A 710); Turner v. Brocato, 206 Md 336 (111 A 2d 855); 2 Pomeroy, Equity Jurisprudence (5th ed), § 689. * * *
“'While most courts have accepted the theory that restrictive agreements should be enforced as an easement or servitude, Mr.

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Sun Oil Co. v. Trent Auto Wash, Inc.
150 N.W.2d 818 (Michigan Supreme Court, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
150 N.W.2d 818, 379 Mich. 182, 1967 Mich. LEXIS 72, 1967 Trade Cas. (CCH) 72,202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-oil-co-v-trent-auto-wash-inc-mich-1967.