225 P. 590 | Wyo. | 1924
This is an action brought by Eugene T. Thomson, as plaintiff, present owner of the reversion, against^ Investors Guaranty Corporation, to cancel a lease for violation of the covenant and condition prohibiting assignment thereof. The lease is for the south east quarter of the north east quarter, and the north east quarter of the south east quarter of section 14, T. 1 S. R. 3 east of Wind River Meridian, in Fremont County. It is dated October 14, 1908, and runs for 20 years.' It is made by the heirs of Flies on Top, an Indian, with the approval of the Department of the Interior of the United States, to the Arapahoe Trading Company, lessee and party of the second part, and its executors, administrators and assigns. The lease contains a covenant against assignment and a provision for re-entry in case of violation. The covenants and conditions of the lease are made binding upon the lessee, his executors, administrators and assigns. On December 16th, 1912, said lessee the Arapahoe Trading Company mortgaged said leasehold interest to G. P. Moor-head. This mortgage was foreclosed in the district court of Fremont County. An order of sale was issued out of said court, pursuant to which the leasehold interest was sold to said G. P. Moorhead and a sheriff’s deed was issued to him on December 29, 1916. Moorhead transferred his interest to L. C. Nelson on October 19, 1917. Nelson transferred his interest to William Wilk on January 25, 1918, and the latter in turn transferred his interest to Investors Guaranty Company, defendant herein, sometime during 1919, before the commencement of this action. No consent to any of these transfers, on the part of the lessors, was obtained before the sale of the land to the plaintiff. Two out of the three Indian lessors had given their consent to the transfer to Moorhead, but they were incompetent and their consent gave no validity to the assignment. An application was
1. It is contended by counsel for defendant that the plaintiff is not a party that can complain of any assignments of the lease; that the grant of the reversion to plaintiff is a waiver by the grantor of the condition in the lease; that the right of re-entry is a personal privilege and cannot be exercised by the grantee of the reversion. We are cited to Wagner v. Wallowa County, 76 Or. 453, 148 Pac. 1140, L. R. A. 1916F 303, but that case does not involve a lease. The common law rule prohibiting the transfer of the right to re-enter for breach of a condition was changed by St. 32 Henry VIII, c. 35, as regards conditions in leases for life or years, so as to allow the grantee of the reversion to avail himself of the condition. Tiffany, Real Property, Sec. 86 (c) ; Tiffany, L. & T., Sec. 149. This statute became a part
“The common law of England, as modified by judicial decisions, so far as the same is of a general nature and not inapplicable, and all- declaratory or remedial acts or statutes made in aid of, or to supply the defects of the common law prior to the fourth year of James the First * * * shall be the rule of decision in this state” etc.
Anri it is said by Tiffany, supra, that the right of the transferee of the reversion to enforce a forfeiture in a lease has not been denied in any state, and there seems to be no doubt, in view of the statute of Henry VIII, above referred to, that the transferee stands in the shoes of the transferor and may enforce the covenant as well as the condition against the assignment, at least as to a breach thereof subsequent to the transfer. Tiffany, L. & T., Sec. 152 (i), Sec. 149 G, p. 885; Bailey v. Allen E. Walker Co., (App. D. C.) 290 Fed. 282; The fact that a lease is made to the lessee * ‘ and his assigns, ’ ’ does not alter that fact. Such provision and a covenant and condition not to assign are not repugnant, for the word “assigns” in the granting clause of the lease applies only to such assigns as there may lawfully be by license or by operation of law. Tiffany, L. & T. Sec. 152 (i). We are cited to Chilson v. Cavanagh, 61 Ok. 98, 160 Pac. 601; L. R. A. 1918D 1044; Jones v. Moncrief-Cook Co., 25 Okl. 856, 108 Pac. 403 and other cases holding that the transferee could not take advantage of any breach that took place before the transfer to him of the reversion. In these cases the transferee had waived the breach. It may be a question whether the grantee of a reversion has the right to take advantage of any breach of a condition previous to the transfer. Tiffany, Real Property, Sec. 86, states that the statute of 32 Henry VIII does not enable a transferee of the reversion to enforce a forfeiture for breach of condition, if the breach occurred before the making of the transfer. See also Tiffany, L. & T. Sec. 149 (9). But see
2. Dumpor’s ease has had a remarkable career in juridic literature. An examination of that literature having-
“It was conceived by some that this license was not of any force to dispense with the condition, because it is uncertain and doubtful in the disjunctive * * * * but all the court was to the contrary * * * * the intent of Lord Stafford (Lessor) was, that one of them might alien, but not all of them, and afterward judgment was given for the plaintiff” (one of the assignees).
The holding here appears to be based on the theory that license to one destroys the condition as a whole. As so construed the ease is contrary to a case in Dyer 334, 73 Eng. Rep. 756, decided about 1574. In that case a lease contained a condition that the lessee should not assign the, premises, or any part of them, without the consent of the lessor. A part was assigned with consent. Thereafter the remaining part was assigned without consent, and the landlord re-entered. The question was, whether he could do so, or whether the whole condition had been destroyed by the
We have investigated the cases upon which Dumpor’s case rests as authority, for the purpose of showing that its foundations are not altogether solid. Particularly is this true in view of the fact that it holds that a condition cannot be apportioned by act of the parties, although it may be apportioned by act of law. It is hard to understand why a condition1 is apportionable in the latter case any more than in the former. Dumpor’s Case was apparently approved in the ease of Whitchcocke v. Fox, 2 Bullstrade 290, 80 Eng. Rep. 1129, decided about 1614. But from that time to 1807 it finds no support in judicial decisions. (7 Am. L. Rev. 626). In that year the case was affirmed in Brummel v. MacPherson, 14 Ves. Jr. 173, Lord Eldon, however, remarking :
“Though Dumpor’s Case always struck me as extraordinary, it is the law of the land at this! day. When a man demises to A, his executors, administrators or assigns, with an agreement, that if he, his executors, administrators or assigns, assign without license, the lessor shall be at liberty to re-enter, it would have been perfectly reasonable originally to say, a license granted was not a dispensation with the condition; the assignee being by the very terms of the original contract restrained as much as the original lessee. ’ ’
‘ ‘ Certainly the profession have always wondered at Dum-por’s case, but it has been law so many centuries, that we cannot now reverse it. It does not, however, embrace the present case. ’ ’
Other English cases directly or indirectly dealing with the rule under consideration are Lloyd v. Crispe, 5 Taunt. 249; Mason v. Corder, 7 Taunt. 9; Doe v. Smith, 5 Taunt. 795, all of which are referred to in the article in 7 Am. Law, R. 616 et seq. In none of these was the rule applied, and whatever authority it retained was finally nullified by Statute 22 & 23 Vic. C. 35 and 23 & 24 Vic. c. 38.
While courts in the United States have frequently said that Dumpor’s Case is law, we have been unable to find a single case prior to December, 1923 that can fairly be said to have applied the rule of that case, unless it be Pennock v. Lyons, 118 Mass. 92. It is not altogether clear in. that case whether the prohibition against assignment extended to assignees of the lease, though apparently it did, but the rule mentioned came up rather indirectly and we should not have regarded the ease of importance were it not for the decision, by that court in December, 1923, in the case of
“A covenant by a lessee for himself and his assigns, not to assign without consent, runs with the land, and is binding upon the successive assigns. Taking the lease, they take upon themselves the covenant, and it seems that in such case one assent by the lessor does not exhaust his right under the covenant or condition; wherefore subsequent assignments are invalid if not assented to by him.”
The second class of cases referred to above are those which, while recognizing the rule in Dumpor’s Case, each find'it not to apply to the ease in hand. These are mostly eases involving subletting or some other covenant or condition, held to be continuing in] its nature. Some of these have other distinguishing features also. Among these cases are: Bleeker v. Smith, 13 Wend. (N. Y.) 530; Dakin v. Williams, 17 Wend. (N. Y.) 447; Williams v. Dakin, 22 Wend. (N. Y.) 201; Garnett v. Albree, 103 Mass. 376; Wertheimer v. Hosmer, 83 Mich. 56, 47 N. W. 47; German Am. Sav. Bank. v. Gollmer, 155 Cal. 683, 102 Pac. 932; 24 L. R. A. (N. S.) 1066; Fisher v. Ginsburg, 191 App. Div. 418, 181 N. Y. S. 516. The third class of cases referred to above are those which virtually repudiate or seem to repudiate Dumpor’s case altogether. These are North Chicago etc. R. Co. v. LeGrand Co., 95 Ill. App. 435; Kew v. Trainer, 150 Ill. 150; 37 N. E. 223; Moss v. Chappell, 126 Ga. 196, 54 S. E. 968, 11 L. R. A. (N. S.) 398; Rachrock v. Sanborn, 178 Cal. 693, 174 Pac. 314; Jackson v. Groat, 7
“A decision regarded by the English bench and bar so unreasonable as to warrant resort to legislation to eliminate it from the body of English laws will hardly be followed in this State.”
In Moss v. Chappell, supra, the court said :
“The decision in Dumpor’s case, having been rendered prior to the date fixed by our adopting statute, is binding upon this court as authority until overruled. The doctrine in that case that a condition is not divisible seems to us to be purely artificial, and not founded upon sound reason. Forfeitures are not favored, and the courts will often seize upon slight circumstances to prevent the operation of a forfeiture. But there seems to be no good reason why one should not be permitted to release or waive a forfeiture as to one person and assert it to another. We think it more consistent with reason and justieé that the rule should be that a forfeiture is only waived in behalf of the person for whose benefit the waiver was made. ’ ’
In Rathrock v. Sanborn, supra, the court enforced against an assignee a provision of the lease providing that assignment thereof could, in each ease, be made only with the consent of the lessors; in other words, the court applied in that case the ordinary rule that the plain provisions of the lease must govern; and hence, the court seems to have ignored the rule in Dumpor’s ease that a condition, though made applicable to an assignee in plain words, is, nevertheless, indivisible and unapportionable. The consent given in that case specially forbid further assignments, but that fact seems not to have influenced the court in its ruling on the point in question.
But we need not rest with this. Lip-service alone does mot keep the rule of a case a living, vital factor in the law
Why should not these principles be applied to a lease where the lessee as well as his assigns are forbidden to assign the lease? We know of no reason whatever. In German Am. Sav. Bank v. Gollmer, supra, it was said that a condition against assignment is in all cases necessarily single in its nature. But why is it? Three centuries of legal lore have never answered that question, though frequently asked, for the simple reason that no answer, to stand the test of logic and reason, can be given. We have already seen what the court said on that point in Brummel v. McPherson, supra, and in Moss v. Chappel, supra. In Dakin v. Williams, supra, the court said on that point:
' “Now the common sense view of a license to the lessee only, and the one coinciding with the apparent intent of the parties would seem to be, that it merely enabled Mm to alien the premises, leaving the operation of the covenant in the lease in full force upon the assignee. To say that it empowered him to assign an absolute estate to the extent of his interest, free from the condition, is assuming the point in question. Was this the intent of the parties, as evinced by this contract ? * * * The doctrine appears to be founded upon the idea, that the condition cannot be divided or' apportioned, though I am free to confess that I see no practical difficulty in this respect. ’ ’
See also the comment in Williams v. Dakin, supra.
It would seem clear, as has been well stated by an author, that where assigns are included within the prohibi
In conclusion: Dumpor’s Case has been called a “venerable error.” Mindful as we are, that we are not here to legislate, but to declare the law, still we are not, we think, called upon to help in perpetuating that error. If the case was at one time a part of the common law of England, it has been so “modified by judicial decisions,” as not to be a part of the common law of this state in contemplation of section 4547, W. C. S. 1920. The rule in the ease mentioned is supported, as stated, by neither logic, reason, or, as intimated by Chancellor 'Wallworth, common sense. Whenever approvingly referred to, that has generally, or at least frequently, been done apologetically. Principles of law and justice ought not to stand in need of any apology. With two, or possibly four exceptions during the course of three centuries, the rule in Dumpor’s case has not, as we have seen, been applied to facts similar to those in that ease. The case has not been merely modified. Subsequent decisions have struck at its vital parts, and by refusing to apply its rule to facts not, in principle, distinguishable from the facts in that case, have disapproved of, .and, in effect, overruled it. The name is left; the vitality is gone. Dumpor’s case, in fact, remains but a specter of its former self. Gradually, but surely, its life has ebbed away; the' attempt, at times, to revive it can, we think, in the very nature of things, be but sporadic,
It follows that the judgment of the lower court should be affirmed, and it is so ordered.
NOTE — See 12 C. J. p. 184; 15 C. J. p. 937 (1925 Anno.); 31 C. J. p. 518 (1925 Anno.); 35 C. J. pp. 976, 979, (1925 Anno.); 984, 985, 1063, 1084 (1925 Anno.).