Watrous v. Allen

24 N.W. 104, 57 Mich. 362, 1885 Mich. LEXIS 799
CourtMichigan Supreme Court
DecidedJune 17, 1885
StatusPublished
Cited by39 cases

This text of 24 N.W. 104 (Watrous v. Allen) 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
Watrous v. Allen, 24 N.W. 104, 57 Mich. 362, 1885 Mich. LEXIS 799 (Mich. 1885).

Opinion

Cooley, C. J.

The purpose of the bill in this case is to obtain a perpetual injunction against the carrying on of the business of dealing in intoxicating drinks on certain premises in the village of Meredith, in the county of Clare.

The allegations of the bill are as follows:

On February 28, 1884, Thomas J. McClennan was owner of the premises in question, and sold the same to the defendants James D. Allen and William F. Holtz, and made and [364]*364delivered to them a deed thereof. This deed contained the following proviso:

Provided always, and this contract and the estate in said premises hereby created is subject to the express condition, that if the parties of the second part, their heirs and assigns, shall at any time sell or keep for sale upon said above-granted premises, or knowingly permit any person under them so to sell or keep for sale, any spirituous or intoxicating liquors,whether distilled or fermented, the entire title and estate in and to said premises hereby sold and created shall cease, and the title to said premises shall thereupon at once revert to and vest in the parties of the first part, their heirs and assigns forever, and shall be lawful for the said parties of the first part, their heirs and assigns to re-enter upon said premises, and said parties of the second part, their heirs and assigns, and every person claiming under him or them, wholly to remove, expel, or put out.”

This deed was recorded in the office of the county register of deeds, March 29, 1884, but when recorded this proviso had been stricken out. Afterwards, on June 7, 1884, Mc-Olennán made a general assignment and transfer of all his property, real and personal, and all actions and causes of action, reversions and benefits, to complainant Watrous, and Watrous took possession of the property under the assignment.

At the time of the execution and delivery of the deed to Allen and Holtz, McClennan was the owner of a large amount of real estate in said village of Meredith, and so continued to be until the assignment to complainant Watrous ; and the bill avers “ that he platted said village, and was the proprietor and owner of the plat thereof, and was thereby directly and specially interested in having the said condition so inserted in said deed observed and enforced, and that the same was so inserted for his benefit as owner of the land and lots in the vicinity and contiguous to said premises, and that whatever rights, interests and benefits the said McClennan had by virtue of said condition and in the reversion of said premises for the violation thereof, belong to complainant.”

On or about the first day of August, 1884, William O’Brien took possession of the lot so conveyed to Allen and [365]*365Holtz, and has commenced the sale of intoxicating liquors thereon as a regular business. O’Brien was aware when he did so of the condition in the McClennan deed, which the bill avers was stricken out by Allen wrongfully ; the act of striking it out being an act of forgery. O’Brien was warned not to enter upon such business before he did so, but refused to heed the warning. The bill avers special injury to complainant Watrous as owner of the-lands conveyed to him by McClennan, and prays that the estate so conveyed to Allen and Holtz be decreed to be forfeited for breach of condition ; that the defendants, and all persons holding from or under them, be enjoined and restrained from giving, delivering, selling or keeping for sale any spirituous or intoxicating liquors, whether distilled or fermented, on said premises, and for other and further relief.

The defendants answered, admitting the principal allegations in the bill, but alleging that the condition in McClennan’s deed to Allen and Holtz was inserted without the knowledge of the grantees, who were not aware of it until some time afterwards and then erased it, as they claimed they had a right to do. Defendants denied “ that said complainant sustains any damage by reason of the sale of liquors as described therein, except that said complainant Watrous and said McClennan are engaged in the sale of liquor in said village, and it is possible that they may not be able to sell quite as much liquor as they would if there was no opposition, and they may be compelled to sell a better article and at more reasonable rates; and in the loss of such profits as a monopoly of the liquor trade might give them, they may be to that extent damaged, but that complainant ■suffers damage in no other way. And defendants aver that if said prohibitory clause had been lawfully inserted in said deed it was void, as a clause inserted to create a monopoly, and in restraint of trade.” They also claimed that McClennan consented to waive the condition before O’Brien began business.

The cause was heard on pleadings and proofs, and the bill dismissed. The complainant appears to have made an affir[366]*366mative case upon the facts, but defendants insist that they established their allegation that the condition was not in the-deed with their assent. On this the burden of proof was upon them, but we cannot say the preponderance of evidence-is in their favor. The erasing of the condition was without any application to McOlennan for correction, and had ail the-appearance of having been done secretly in the expectation-of obtaining a benefit from a recording of an instrument that on its face showed no restrictions.

The defendants also rely upon evidence that McOlennanwaived the condition. An agent of O’Brien testified that in a certain interview, in which McOlennan several times refused to assent to waiving the condition, he finally did so. The evidence is not very satisfactory, but when followed by' further testimony from the same agent that he soon after-wards went to McOlennan, and endeavored to secure his consent to O’Brien’s proposed business by promising him ten per cent, of the profits, we are not left in doubt that there is some error in the first evidence.

The defendants also rely upon the legal proposition that conditions in restraint of trade are void. This, in its application to a parallel case, was considered in Beal v. Chase 31 Mich. 490, where the authorities are collated and examined-■ It was there held thaté,a covenant in restraint of trade, so far as the covenantee had in his own business an interest in enforcing it, might be valid. This case comes within the decision in that ease. See also Doty v. Martin 32 Mich. 462 Caswell v. Gibbs 33 Mich. 332. There is nothing in the position taken by the defense that the condition tends to the-establishment of a monopoly in the business of selling intoxicating drinks, and is thus opposed to public policy. It is not the policy of this State that every one should sell intoxicating drinks who pleases. ■ On the contrary, heavy taxes are levied and onerous conditions imposed by the State for the express purpose of limiting the number of those who-shall sell; and the condition in question is directly in the line of that policy, instead of being opposed to it.

[367]*367This disposes of all the grounds of defense which are brought to our notice by the brief in this Court.

The complainant is not entitled to enforce a forfeiture of the estate in equity, for equity,does not aid in enforcing forfeitures. Crane v. Dwyer 9 Mich. 350; White v. Port Huron, &c. R. Co. 13 Mich. 356; Wing v. Railey 14 Mich. 83; Horshurg v. Baker 1 Pet. 232; Livingston v. Tompkins 4 Johns. Ch. 415; Smith v.

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Bluebook (online)
24 N.W. 104, 57 Mich. 362, 1885 Mich. LEXIS 799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watrous-v-allen-mich-1885.