166 N.E. 218 | Ohio | 1929
Lead Opinion
Upon March 29, 1871, John Roberts, being then the owner of the premises in question, *311 for a valuable consideration executed a deed to the trustees of the Copps Chapel Methodist Episcopal Church, the pertinent portion of which is as follows:
"Know ye, that John Roberts, the grantor, for divers good causes and considerations thereunto moved especially for $50 received to his full satisfaction of the trustees of the M.E. Church, the grantees, have given, granted, remised, released and forever quitclaimed and do by these presents absolutely give, grant, remise, release and forever quitclaim unto the said grantees to their heirs and assigns forever all such right and title as he, the said grantor, has or ought to have in or to the following described land situated in Mercer county, Ohio, and described as follows, to wit: * * *
"To have and to hold the premises aforesaid unto the said grantees and their successors so that neither the said grantor or his heirs nor any other person claiming title through or under him shall or will hereafter claim or demand any right or title to the premises or any part thereof; but they and every one of them shall by these presents be excluded and forever barred so long as said lot is held and used for church purposes."
After the above deed was executed, the trustees of the church built the building in question, which is a small frame building, erected upon stone pillars.
The courts below, in granting to the trustees the right to sell the church building and outbuildings, held that such buildings are trade fixtures, erected by the trustees of the church for the particular use and benefit of the church.
If the understanding of the parties as to the contract is to be deduced from their actions, it would *312 seem that the bringing of this suit upon the part of the Copps Chapel Methodist Episcopal Church indicates an understanding upon the part of the church society that the building, when erected, was not to become a part of the realty. However, the majority of the court are of the opinion that the law of trade fixtures does not decide this controversy, but that the judgment must be affirmed upon another ground, to wit, upon the ground that the deed in question contains no reverter clause, that there is no condition or limitation of the grant, and no provision for the reversion of the property to the heirs of the grantor.
This is the general rule with regard to conveyances for school or church purposes. As stated in 44 L.R.A. (N.S.), 1222, in the note:
"In general mere statements in the deed that the property is conveyed for school purposes, or is to remain for such purposes, and similar statements, are not construed as conditions or limitations of the grant.
"Thus, it has been held that there was no condition or reverter where the deed * * * for $1 conveyed land to a county with warranty 'for the special use, and none other, of educational purposes, and upon which block shall be erected a college or institution of learning free from all sectional or political influence.' Raley v. Umatilla County,
This case held in the syllabus that, to create a condition in a grant, apt and appropriate words ought to be used, or a right of re-entry be reserved, and that the conveyance set forth does not create a condition subsequent. *313
In Faith v. Bowles,
In Barker v. Barrows,
In the present deed, there are no words indicating an intent that the grant is to be void if the declared purpose is not fulfilled. The deed contains no words which indicate an intention that, if the grantee omitted to use the estate for church purposes, the same should thereupon be forfeited, and should revert to the heirs of the grantor. *314
It is an elementary proposition of law that conditions subsequent are not favored by the law, because on the breach of such conditions there is a forfeiture, and the law is adverse to forfeitures. 4 Kent's Commentaries, 130; Stanley v. Colt, 5 Wall. (72 U.S.), 119,
Where the language employed declares a condition and imports a forfeiture, a clause of re-entry is not necessary, but we cannot insert into this deed, by mere judicial construction, words signifying a condition and reversion to the grantors in the event the condition is broken.
In Curtis v. Board of Education of City of Topeka,
"They in effect create a covenant that the property shall be used in a particular way. * * * There are no words in the deed stating that the estate was or should be conveyed 'upon condition,' or that it might be 'forfeited' under any circumstances whatever, or that the estate might under any circumstances 'revert' to the grantors or their heirs, or that they might under any circumstances ever have the right to 're-enter' the premises." *315
The court declared in this case, in the syllabus, that the evidence did not create an estate upon condition either precedent or subsequent, but that the words "for the erection of a schoolhouse thereon, and for no other purposes," constituted only a limitation upon the manner in which the property should be used. The court went on to state in the syllabus that conditions subsequent which render estates already vested liable to be forfeited are never favored in law; and no deed will be construed as creating such a condition unless the language to that effect is so clear that no room is left for any other construction.
This is the precise situation with regard to the deed in question here. There are no words of condition or forfeiture in the deed. There is no reverter clause, nor any provision establishing the right of re-entry. Hence, taking the deed by its four corners, it shows that the grantor intended to convey, and did convey, to the grantees all of his estate in the land.
This same doctrine has been declared in several holdings by this court. Two of the decisions were affirmances without opinion. City of Cincinnati v. Babb, 4 Or. D. (N. P.), 464, 29 W. L. B., 284, 11 Dec. Rep., 785; Babb v. City of Cincinnati,
"1. A deed of conveyance for one-half acre of *316 land having been made and delivered by a grantor to two grantees upon consideration of twenty dollars, as follows:
" 'To have and to hold the above granted and bargained premises with the appurtenances thereof unto them, the said grantees or their successors in office, forever, to their own proper use and behoof, but it is expressly to be understood that the said grantees nor their successors in office, shall not at any time use or occupy the aforesaid premises for any other purpose or purposes than whereon to erect or build religious meeting houses or parsonages, and for cemetery or burying ground,' * * * and a street having been located by the village upon a strip of said land thirty feet wide, for which the successors of said grantees received five hundred dollars, and an action having been brought by the heirs of the grantor against the village for the recovery of the value of said strip of land: Held, — That said heirs had no title to said strip of land, and no right to the value thereof.
"That as said deed had no words of forfeiture or re-entry, the diverting of said lands to uses and purposes, other than those expressed in the deed, did not in legal effect revest title to said lands in the grantor, or his heirs."
The court pointed out in this case that the deed of conveyance was for a valuable consideration, and commented upon the fact that, when value is paid for an estate, with the stipulation that the estate is to be used only for particular purposes, a breach of the covenant restricting the uses and purposes to which the estate is to be devoted does not have the legal effect of forfeiting the estate and reinvesting *317 the title in the grantor, his heirs or assigns. The court says, pages 75 and 76 of 58 Ohio State, (50 N.E. 100):
"To have such legal effect, there must be words of forfeiture or re-entry in the deed. * * *
"It is clear that the deed in question conveyed away all the title to the premises which the grantors had, and that the grantees received all such title, (which was the fee) for the uses and purposes expressed in the deed; and as there are no words of forfeiture or re-entry in the deed, no title whatever vested in the heirs of the grantor, upon breach of the covenant as to the uses and purposes to which the estate was to be devoted."
It was urged in that case, exactly as in this case, that the stipulation in the original deed was broken when the ground was conveyed for other purposes than those expressed in the deed by the grantor, and that, when the trustees sold the 30 feet of ground for street purposes, they forfeited their title to the land, and that the title then reverted to and was vested in the heirs of Martin Greiner. Hence the Ashland case decides the exact legal proposition presented in this controversy.
The Ashland case was cited and relied upon in the case ofCleveland Terminal Valley Railroad Co. v. State, ex rel.,
"When land is granted to a city upon a valuable consideration to be used for streets and other purposes, the title will not, in the absence of an express stipulation to that end, revest in the grantor *318 because the land is subsequently used for street and railroad purposes."
The same doctrine has also been cited with approval and made a ground of the holding of the syllabus in the case of City ofCleveland v. Herron,
Our attention is called to the case of Lessee of Sperry v.Pond,
"To have and to hold the premises aforesaid unto the said grantees and their succesors so that neither the said grantor or his heirs nor any other person *319 claiming title through or under him shall or will hereafter claim or demand any right or title to the premises or any part thereof."
The grantor then continued:
"But they and every one of them [the grantor and his heirs] shall by these presents be excluded and forever barred so long as said lot is held and used for church purposes."
The significant "and no longer," which existed in theSperry case, is absent. The circumstances present in that case, which led this court to declare that a condition existed, are not present here, and, under the express ruling in the case ofVillage of Ashland v. Greiner, supra, the statement in this deed is not a condition, nor limitation of the grant, but a mere covenant that the property shall be used in a particular way.
The petitioners state that they desire to allow the real estate to revert to the grantor, his heirs or assigns, and that they desire to sell and dispose of the church building, outbuildings, furniture, carpets, and books of the church. Under the deed, they could claim the land, and hence obviously they have a right to claim a part only of what belongs to them, and to permit a part to revert. It is immaterial whether the church is regarded as a part of the realty. Whether it be considered as a trade fixture, or, because of its permanent affixation, as a part of the realty itself, it belongs to the petitioners.
The trial court found that the petitioner, the Copps Chapel Methodist Episcopal Church, through its trustees, is the owner of the church building, outbuildings, and other chattel property on the premises, and ordered, adjudged, and decreed that the *320 trustees of the petitioner proceed to sell at private sale the church building and outbuildings, as in the petition described. The Court of Appeals rendered a similar judgment on appeal. This judgment was correct, and must be affirmed.
Judgment affirmed.
KINKADE, ROBINSON and MATTHIAS, JJ., concur.
Dissenting Opinion
The statement in the majority opinion shows that the subject-matter of this controversy is a little frame church building, built 57 years ago, and to that statement might be added that it is located in a rural district, miles from any city or village, and at a prominent crossroads in Mercer county. This latter statement does not appear in the record, but it is the fact. Another fact not shown by the record, but of such common knowledge that it may be judicially noticed, is that churches are being centralized in much the same manner as schools. This little country chapel can no longer be supported, or efficiently function, because the automobile has taken the worshipers over improved highways to more elaborate places of worship in cities and villages. When this church was built 57 years ago, a farmer who was one of the members and principal financial supporters of the congregation conveyed a corner of his farm for a small consideration, and the habendum clause of the deed provided that the congregation might hold the property so long as it was used for church purposes. The parties evidently did not think it necessary to employ a lawyer to insert in the deed all the *321 whereases and provisos which have come down to us from the feudal ages, but did state with great clarity and freedom from ambiguity, and in homely style, that which they all clearly understood then and clearly understand now entitled them to hold the land only so long as it was used for church purposes, and, upon any other use being made of same, that it should revert to the grantor and his heirs. This lawsuit began as a proceeding under the statute, instituted by the church society, to dispose of its interest in the property. In that petition we find the following statement: "Your petitioner desires to disband said church, to allow the real estate as above described to revert to the grantor aforesaid, his heirs or assigns, and desires to sell and dispose of the remaining property of said church," etc.
The trustees of the church desired to have no controversy about the land, and realized that they could not continue to hold the land without maintaining a church thereon, and doubtless further realized that, upon the property ceasing to be used as a place of worship, it would become subject to taxes and road assessments, and that they would be required to keep down noxious weeds, and otherwise prevent the property from becoming a public nuisance. They also realized that they could not even plant it in crops. The action of the trustees of the church was not a defense to a suit to recover upon a forfeiture, and the aid of a court of equity was not invoked for any such purpose. Being a small frame building 57 years old, far removed from populous centers, it must necessarily be of small value. If moved to a distant location, or if torn down to salvage the materials, it is matter of common knowledge *322
that little value can be realized from such a building. The majority opinion and judgment, contrary to precedents in pleading and practice, adjudges the building to the church society by the circuitous method of declaring its title to land which its does not seek, and which it desires to surrender to the grantors. The maxim, non allegata non probata, has been thrown into the discard. The law on the subject of fixtures, declared in Teaff v. Hewitt,
During the last two or three decades there has been a notable tendency to develop the practical side of the administration of justice. The difficulty with this decision is that it reaches impractical results. Aside from the impractical outcome of the case, I find myself unable to concur in the legal propositions declared. This deed is a contract, and should be construed so as to carry out the intention of the parties. The parties having apparently agreed as to the intent of the contract this court should, in my opinion, reason from the standpoint of the parties, and not contrary to that upon which they have agreed and contrary to the intention of the contract as agreed upon by them. In support of the conclusions reached, a number of authorities have been cited in the majority opinion, and I desire to discuss each of those authorities.
The case of Raley v. Umatilla County,
It was claimed that the trustees were not carrying out the purposes of the trust. I quite agree that this constituted no ground of forfeiture. The trustees should have been compelled to execute the trust. That case involved nothing more than a broken promise.
In Faith v. Bowles,
In Barker v. Barrows,
In Curtis v. Board of Education of City of Topeka,
"We think the property in controversy belongs to the school district of the city of Topeka, to be used for school purposes only. If it should ever be used for any other purpose, then any person injured thereby would have his action for damages, or his action to enjoin the parties from so using it; and *325 possibly circumstances might occur or be brought into existenceunder which the courts would hold that the title to theproperty had been forfeited; but no such case is presented in the present action."
The only other cases cited in the majority opinion are decisions of the courts of this state.
The case of Cincinnati v. Babb, 4 Or. D. (N. P.), 464, 29 W. L. B., 284, 11 Dec. Rep., 785, affirmed without opinion in Babb
v. City of Cincinnati,
In affirming that decision without opinion, this court declared nothing contrary to what the defendant in error contends for in the instant case.
Watterson, Trustee, v. Ury, 3 Cow. D., 171, 5 Cow. C., 347, affirmed without opinion in Ury v. Watterson, *326 Trustee,
The case of Village of Ashland v. Greiner,
The case of Cleveland Terminal Valley Rd. Co. v. State, exrel.,
The last case cited is that of City of Cleveland v. Herron,
Out of the multitude of cases on this subject the few cases cited in the majority opinion come the nearest to sustaining the position of those who contend for a strict interpretation, but surely those cases are not by any means sufficiently strong or harmonious to establish the rule. An examination of all the authorities on this subject shows that those cases which give a restricted meaning and application to words of limitation are cases where a trust has been created or a promise made as a part of the consideration, or where a portion or all of the property has been appropriated to public use, or where the description of the use is in such general terms that it will not create a condition, or where the recitals are contained in other parts of the deed than the habendum clause. It is the purpose of the habendum clause to determine the interest granted and to limit the tenure of the estate. The limitation in the instant case is found in the habendum clause. A deed, like any other contract, should be so construed as to effectuate the intention of the parties. It should not be necessary to employ technical language for this purpose. The courts in these latter *329 days have been making material progress toward the avoidance of technical terms and phrases. They have been industriously engaged for several decades in brushing aside the cobwebs which have been accumulating in real estate law and conveyancing since the feudal period, but once in a while a case is found which deliberately hangs a few cobwebs in places where they did not exist before. We fear that this case must be placed in this classification. The great majority of cases on this subject treat limitations in the habendum clause as creating a determinable fee and such clauses are construed in accordance with the natural meaning of the language used. Where the intent of the parties is clear, any fair and reasonable implication from the language used should be given effect. Where reverter and forfeiture are implied, there is no necessity that those technical terms should be expressed. We find no well-considered authority which has refused to enforce the limitation on the mere and sole ground that the terms "reverter" or "forfeiture" are omitted.
Among the cases which hold that limitation upon the estate granted without technical words of reverter or forfeiture constitutes a base or determinable fee, we will discuss only a few.
Jamaica Pond Aqueduct Corp. v. Chandler, 9 Allen (91 Mass.), 159, had under consideration a deed in which the habendum clause contained the statement, "his heirs and assigns, under the restrictions and reservations aforesaid, so long as said grantors shall keep pipes in his land, as aforesaid, and no longer." This was held to convey a base or determinable fee. From the opinion, page 168, we quote:
"The effect of this limitation is not to render the *330 estate granted less than a fee, but only to render it, in legal phraseology, a base or determinable fee. This is defined to be 'An estate which may continue in one and his heirs forever, but which may come to an end or be determined by some act or event expressed on the limitation, to circumscribe its continuance.' It is impossible, upon any sound rule of construction, to neglect the full and explicit language of the habendum in the deed, or to give it any interpretation other than that which the words naturally and legally import," etc.
In Scheetz v. Fitzwater, 5 Pa. St., 126, the deed conveyed a milldam site for the use and service of a mill, and for no other use whatever, without words of reversion or forfeiture. It was held that the grantee's title to the soil of the millpond was a base fee, terminable on disuser as a pond, when it revested in the assigns of the grantor. At page 128 of the opinion it is stated:
"But Emlen did not convey a fee-simple estate in that land. He conveyed a qualified fee, determinable on the abandonment by Lardner, his heirs or assigns, of the use and service for which the conveyance was made, as stated in his deed. And in conveying such limited fee, he retained the reversion in himself; and that he could permit to descend, or sell to others. To convey such limited fee, and to retain the reversion, was his intention, as the court collects it from his deed; and such intention of the grantor, when legal, is the governing principle in construing conveyances: [Hollingsworth v. Fry], 4 Dall. [Pa.] 347 [Fed. Cas. No. 6,619,
In State v. Brown,
"By the terms of the conveyance, the grantees take a qualified fee, liable to be defeated whenever they cease to use the land for the purpose specified in the grant. 1Inst., 1. b., 27 a; 1 Cruise, 79, tit. 1, Section 82, 2 Bl.Com. 110."
In Kirk v. King,
To the same effect is Stilwell v. Melrose, 15 Hun (N.Y.), 378.
In addition to the foregoing cases, we find that this court has thrown some light upon this question.
In Sperry v. Pond,
In Board of Education of Village of Van Wert v. Inhabitantsof Town of Van Wert,
"1. That the dedication was for a specific use, and conferred no power of alienation so as to extinguish the use.
"2. That if the use created by the dedication were abandoned, or should become impossible of execution, the premises would revert to the dedicators or their representatives, and that, without their consent, they could not be divested of their contingent right of reversion by an absolute alienation."
While this case is not parallel to the instant case, it is at least significant that, although there were no words of reversion, the court did not permit the real estate to be used for purposes other than that to which it was dedicated.
Another case not clearly in point, but which is at *333
least significant, is that of Taylor v. Binford,
"We will assume, without, however, so deciding, that the grant is upon condition, the breach of which would work a forfeiture. Has the condition been broken? Surely not, by the sale to plaintiff. The estate conveyed was a fee, and of this estate the right to assign is an essential incident. Indeed, by the terms of the instrument the estate is expressly made assignable, the grant being to the board 'its successorsand assigns forever.' The mere fact of a sale, therefore, would be no breach of the condition, in the absence of a showing that the grantee diverted the land to other than school purposes only; and this fact nowhere appears."
In that case the court could very easily have disposed of the entire controversy by holding that, by reason of the omission of words of forfeiture or reversion, the plaintiff could not recover. By putting the decision upon the other grounds, and by its assumption that a breach would work a forfeiture, we may easily assume that the court was at least not overruling the case in the Fifth Ohio Report. *334
We are of opinion, therefore, that the authorities cited in the majority opinion do not establish the rule stated in the syllabus, and we are also of the opinion that the cases herein cited clearly establish the contrary.
It is suggested in the majority opinion that the bringing of the suit by the church indicates an understanding upon the part of the church society that the building, when erected, was not to become a part of the realty. This is surely unsound. A petition is in no sense evidence in support of the cause of action. This statement is a parallel to the argument of the juror that the accused must be guilty, else he would not have been indicted. The action of the members of the present board of trustees in bringing this suit can in no sense reflect an understanding of their predecessors of 57 years ago.
Their action in bringing the suit is in the nature of self-serving conduct. The true deduction is that, by reason of their disclaimer of any title to the land, and their expression of a desire to allow it to revert, their action against interest should be accepted as an interpretation of the contract by the parties which relieves the court of any duty.
The quotation from the editor of L.R.A., as found in 44 L.R.A. (N.S.), 1222, is not borne out by the cases cited by him, nor by any other authorities to be found anywhere.
The majority opinion states: "The deed contains no words which indicate an intention that if the grantee omitted to use the estate for church purposes, the same should thereupon be forfeited, and should revert to the heirs of the grantor."
This can only be so if no effect whatever is given *335 to the words of limitation found in the habendum clause.
It is true that conditions subsequent are strictly construed, but they are not disregarded altogether. This deed, strictly speaking, does not contain a condition subsequent. Thehabendum clause creates a determinable fee, and such an instrument is not strictly construed.
The lower courts awarded the church building to the church society on the ground that it was a trade fixture. That theory is repudiated by this court, and it follows indisputably that it is an ordinary fixture and a part of the realty. Upon no sound principle of law can it be severed. It is unfortunate that this case has been disposed of upon grounds which were not pleaded or argued.