17 Wend. 136 | N.Y. Sup. Ct. | 1837
By the Court,
The specific objections to the certificate of proof endorsed on the deed, are now heard for the first time. They lie, first, in the commissioner’s omission to state the place of residence of the
The judge was clearly right in deciding that, under the pleadings, all the material allegations of the plaintiff, except as to the execution of the lease, were admitted (Cooper v. Watson, 10 Wendell, 202). Even a notice of special matter (Kane v. Sanger, 14 Johns. R. 89), or a stipulation to allow such matter in evidence (Dale v. Rosevelt, 9 Cowen, 307), will not enlarge the operation of the plea. This does not preclude the defendant, under a proper notice, from taking the onus on himself of negating by evidence, what would
No authority was cited on the argument for the right to prove a breach of the cross-covenant and clause of re-entry. The ground taken is that the lease became void by the breach alone. There is no express provision that it should be void for that cause; but only that.the defendant might re-enter, and that he should then be in as of his former estate. He had not re-entered. We think his only course to avoid the deed, was to do so either by [145] his own act or by an ejectment, until which the lease was voidable merely, and not void, it is not necessary to say what would have been the effect of a direct nullifying clause.
Nor can this court notice the mere equitable right of the Paddocks to a ease; and consider as already done, what a court of equity might decree upon the doctrine of that court under the statute of frauds. No such rule prevails at law; nor can it be noticed in a court of law for the purpose of saying that an oral contract to give an indenture of lease for ten years, though followed by immediate possession in the lessees, shall be deemed a lease for that time in prcesenti; nor can we give relation to the subsequent lease back to the time of the contract. This would be a very doubtful defence, we should think, in a court of law, even had the original contract been in writing. The rights of the parties in a coprt of chancery are entirely foreign to the case. It never has been held that a court of law can in any way enforce these oral contracts declared utterly void by the statute of frauds, although there may be a part execution.
Laying that contract out of view, the question arises whether that lease and what followed were a breach of the covenant. And we think they were so. The erection of the rival mill might have been easily prevented by proper covenants and clauses of forfeiture in the lease to the Paddocks, which the defendant failed to introduce; but he gives a lease and receives rent for general unrestricted purposes. This was a breach by the defendant himself from the time when Paddocks’ mill went into operation. The case of Rex v. Pedley (1 Adolph. & Ellis, 822), will be found to contain principles entirely sustaining this view of the case, if any authority be necessary for saying that the erection of a rival mill, resulting at least from the defendant’s gross negligence, and of which he is annually receiving the avails by way of rent, shall not be deemed his own act.
The only remaining questions are, whether the covenant sued upon runs with the land; at what time it was broken; and was it proper to receive the opinions of witnesses as to the amount of the plaintiff’s damage. [146] 1. Does this covenant run with the land ? We think there is no very great difficulty in saying with the learned judge at the circuit, that the breach did not arise till the rival mill of the Paddocks was in operation. That was posterior to the assignment from Delacroix to the plaintiff; which disposes of the objection "that the covenant, by being broken at the time, had already taken the character of a chose in action. The reasons Why tlie execution of the lease was not, per se, a breach, can better be considered after looking into the nature and quality of the covenant for assignability. Did it pass by assignment and vest the legal right to sue in the plaintiff as assignee, or must he come here in the name of Delacroix?
The questions on the nature of the covenant could, as suggested by the circuit judge, properly be heard only on motion in arrest. The parties, .however, had a right to waive that form as they have done, and argue the question in connection with the case. I shall, therefore, proceed to consider it.
The covenant enjoys, as we shall see, a position most favorable for an assignable character. It is between lessor and lessee, and so the requisite
The leading authority' on this question, is Spencer’s case (5 Rep. 16), and putting all the cases which follow together, they form little more than a commentary on the seven resolutions there adopted by the court. Lord Coke says, in his report of that case; “ Reader, observe your old books; for they are the fountains out of which these resolutions issue';” but the wonderfully diligent and learned reporter has so far exhausted those books, that his injunction has seldom been obeyed by the most recondite among the bar or the bench. See all the resolutions in this case handsomely condensed, in Bally V. Wells (3 Wils. 27, 28), but without, the numerous and learned references in the original report by Lord Coke. The case itself was a covenant by the lessee for him, his executors (not assigns), that he, his executors, administrators or assigns, would build a brick wall on the demised premises. His assignee being sued, it was held that he was not bound, because the thing in respect to which the covenant was made, was not in esse, and had not yet become a part of the land. Its existence was in- contemplation. And yet it was agreed that because it was a thing that would directly affect the demised premises, if the word assigns had been used, the covenant would have bound the assignee. The assignee is to take the benefit of it, and shall be bound by express words (Grey v. Cuthbertson, 2 Chit. R. 482, S. P.) In the case at bar, there is not and never can be any' tangible connection between the factory demised and the not erecting another factory in the same neighborhood. The omission, however much it might add to (he value, could never become a part of the premises in the same sense with the unbuilt wall. If it be so, it is in virtue of the covenant; that is, of nothing to be done or omit-‘ed upon the land, physically speaking, as was said of the wall in the second resolution in Spencer’s case, and on which much stress was laid; and the resolution adds, “ if the thing to be done be merely' collateral to the land, and doth not touch or concern the thing demised in any sort, [148] there the assignee shall not be charged; as if the lessee covenants for 0 him and his assigns to build a house upon the land of the lessor which is no parcel of the demise, or to pay any collateral sum to the lessor or to a stranger, it shall not bind the assignee, because it is merely collateral, and in no manner touches or concerns the thing that was demised or that is assigned over.” Within the same distinction, a covenant by the lessor to repair, runs with the land, and the assignee of the lessee may sue the lessor for a breach. This is laid down in the fifth resolution. So of the lessee’s covenant to repair according to the sixth resolution. Of such covenants there is no doubt, for the thing is actually to be done upon the land. And in this all the cases will be found to agree. The Dean and Chapter of Windsor’s case (5 R. 24),
But it is obvious from extracts already made, that Spencers case never intended to confine the negotiable quality of covenants to those which respect some physical act or omission upon the land. Such a restriction would contradict a multitude of cases. In the Dean and Chapter of Windsor’s case, it is said that on a covenant by the lessee to discharge the lessor de omnibus oneribus ordinariis et extraordinariis, and to repair the houses, an action lies against the assignee. The restriction would also subvert the familiar doctrine that covenants for quiet enjoyment and warranty run with the land. In Bally v. Wells, as reported in Wilmot's Opinions, 341, 3 Wils. 25, S. C., Lord Chief Justice Wilmot comments at large on several resolutions in Spencer's case; and particularly on the instance of the house to be built on other land, or to pay a collateral sum of money; and he remarks, “the reason why the assignees, though named, are not bound, is because the thing covenanted to be done has not the least reference to the thing demised. It is a substantive independent agreement, not quodam modo, but millo modo, annexed or appurtenant to the thing leased.” In a subsequent part of [149] the opinion, he says, that to carry over the covenant to the assignee, where something is to be done de novo, not only must the assignee be named, but the covenant must respect the thing leased. Again, he says, such a dependent covenant is “an agreement to do or omit to do something which respects the thing on which it depends.” In contemplation of law, it then forms a part of or appurtenance to the premises; it enters into their value, if the covenant be on the side of the lessor, or the amount of the rent, which is itself a part of the land (Spencer’s case, 3d resolution). If the covenant be on the side of the lessee, all becomes land or its incident; and the incident, if not arrested or diverted, or separated by some extraneous act, follows as necessarily into the hands of the assignee, as if it were the principal. Much is said in all the books concerning privity. If the covenant stands detached from the land, or be merely collateral to it, there is no privity. We have instances in Spencer’s case, 3d resolution, if a man lease sheep, &c. for a time, and the lessee covenant to deliver them at the end of the time, that is personal. And the case is not varied, though that demise and covenant be inserted in a lease of land. It is equally disconnected; there is not that privity, says the resolution, which is necessary. What would have made that privity? Wi'mot, C. J., in Bally v. Wells, answers the question: “ The covenant must respect the thing leased, which I consider as the medium creating the privity between them. The chose-in action, which of itself is not assignable, loses that property under those circumstances, and in a waiting, dependent state, follows its principal. Covenants which run and rest with the land, lie for or against assignee at the common law, though not named. They stick so fast to the thing on which they wait, that they follow every particle of it.” The privity need not always arise from the original relation of landlord and tenant, though assignable covenants are much more numerous there. The instance put in Spencer’s case, 3d resolution, is of that kind; but in truth it often stands independent of such relation, and prevails to some extent between vendor and purchaser, or the owner of an absolute estate and the grantor of some incident which permanently [ 150] improves the estate. Wliy do charters and covenants for assurance and warranty, and the like, follow the land ? Because they make a part of its value. Any one would give more for a warranted farm than a succession of'quit claim deeds. Fitzherbert, in his abridgment, p. 181 of the folio, and 420 of the Dublin ed. of 1793, says: “ If at this day a man granteth to one common of estovers, or of turbary in fee simple, to burn in his manor by that grant it is appurtenant to the manor, and if he make a feoffment of the manor,
In the case at bar the covenant is still more material. It is not to avoid doing what would be a mere matter of inconvenience or offence to good taste; but what might very materially impair the factory lot demised to Delacroix, for business purposes. The rent was doubtless large in proportion; and the benefit would attend the lessee and all his assignees, whether immediate or remote, during the term. The covenant respected the premises; it regulated their value, it fixed the amount of rent, it was coextensive with the estate it benefitted the owner of the demised premises, and no body but the owner
I venture to say that there is no well considered case opposed to the character which the authorities so far go to fix upon the defendant’s covenant. There are. certainly cases which seems startled at the comprehensive rules concerning assignable covenants, and which therefore seek to limit the number; and there are others which enable us still more clearly to see the legal partition between real and collateral covenants. It is not to be denied, however, that they still leave the application of old principles to new cases, a very nice exercise of the mind, and remaining in greater degree a matter for judicial discretion than almost any other of equal importance in the law of property.
It was supposed by the counsel for the plaintiff, that our revised statutes, (1 R. S. 747 of old and 739 of 2d ed. §23, 24), re-enacted from 1 R. L. of 1813, 363, 4, § 1, 2), cover the whole ground, and make every covenant in a lease indiscriminately assignable. They say, in terms, that the assigns of a lessee shall have the same remedy by action against the lessor, &c., for the breach of any covenant or agreement in the lease, as the lessee himself might have had. These acts, however, are but substantial transcripts of the 1st and 2d sections of the statute 32 H. 8, ch. 34, passed on the dissolution of the monasteries, 5 Fick. Statutes at Large, 48. Spencer's case was decided in the 25 Eliz. and concludes with a resolution that the statute was confined to covenants touching or concerning the thing demised, and did not extend to collateral covenants. Indeed any other construction would make all covenants negotiable, if the parties would only take the precaution to insert them in any indenture of demise. It would confound all distinction between covenants real and personal and fasten an endless number and variety of incumbrances upon leasehold property; though it would certainly have saved Lord Coke and the judges in Spencer's case, and many since, much labor in maintaining an intent of the legislature imperfectly expressed. The [153] difficulty seems to be inherent in the subject, whether it be handled by legislators or judges; and yet the proper distinction must be maintained as far as possible.
in Keppell v. Bailey (2 Mylne & Keene, 517; 1 Coop. Sel. Cas. 298 S. CS), it was held that a covenant by the lessees of Beaufort iron works, though made for themselves and their assigns upon full consideration, with a rail road association, to take all the lime stone, &c., necessary for their works, by a course of transportation on the road from Treval quarry, at a certain toll, was collateral. The assignees of the works refusing to abide by the agreement, the association filed their bill to compel a performance. Lord Chancellor Lyndhurst thought the covenant void, as being for a toll higher than allowed by statute; but the question was fully argued whether this was such a covenant as ran with the land, and would therefore subject the assignees, however it might operate upon the original covenantors, and he held it to be a mere personal covenant. He went through with the case first on principle, and then on all the cases which appeared to make against him, criticising them with great freedom. The objection raised on the ground of perpetuity did not strike him with any force, because there were persons in existence who could release or discharge the incumbrance; and there was some doubt whether the word assigns applied to the assignees of the lessees, or only those of the shareholders; but the case was finally put by him on the ground that the covenant did not pass; a question which was very fully discussed. Going on principle, he recognizes the right to create easements and attach them to lands in fee, I have instanced common of estovers, &c., from Fitzherbert. The Lord Chancellor adds ways; and as late as 1691, it was held that a covenant with one and his heirs, to allow
So far as his lordship’s remarks extend to the covenant before him, and others by absolute purchasers, and others to do certain acts of business or forbearance, or allow certain privileges to covenantees and their assigns, all being disconnected with the relation between landlord and tenant, the restrictions, which he seeks to impose are reasonable, and not in direct con-' fliet with any of the adjudged cases; certainly not with those which relate to the rights and liabilities of the assignees and lessors and lessees. The statutes cited relate to these, and are broad enough, taken literally, to give assignees a remedy on every possible covenant contained in a lease. These statutes transfer the privity of contract (Thursby v. Plant, 1 Saund. 237). The lord chancellor himself remarks, that “ the difference is obviously very great between such a case as this [the one he was considering] and the case of covenants in a lease, whereby the demised premises are affected with certain rights in favor of the lessor.” I need not say that the remark may, under the statute and all the cases, be invested and applied to [155] rights in favor of the lessee. True he says afterwards, that it would require but little attention to the cases to satisfy us, that even where the privity of lessor and lessee exists, there are bounds so narrow to the province of real covenants as would make the one in question lie on the extreme verge of it, if it did not fall without it. He certainly expresses himself a little more strongly afterwards; but he no where takes it upon him to say, with confidence, that the covenant fell without; and he might, after what he had said, and perhaps properly said, of the limitation under which other cases are to be taken, have dismissed all those which relate to the assignees of lessors and lessees, as inapplicable. He does so with Spencer’s case ; and Tatem v. Chaplin (2 H. Black. 133), which was a covenant to reside on the land, also with Jourdain v. Wilson (4 Barn & Ald. 266), which was a covenant by the lessor to supply the house demised with water at a given rate. That case is certainly much in point to the case now in hand, unless, as his lordship thinks in another part of his opinion, it be quite material that the act covenanted for should be done on the land. I have only to repeat that this can not be so. He dismisses Vernon v. Smith, already cited, and Bally v. Wells, which he cites from 3 Wils. 25, and Webb v. Russell (3 T. R. 393), upon the same distinction.
In Collison v. Lettsom (6 Taunt. 224, 229), the lessor covenanted out of his estate to give the lessee the pre-emptive right to certain land lying adjoining to the demised premises. It was admitted by counsel and assented to by the court, that the covenant was collateral and did not run with the land. The whole was obiter, as the case went off entirely on another point. In another report of the same case (2 Marsh, 1, 4), the point is simply mentioned as being agreed by the counsel on both sides, and the court as deciding the case on another ground. It was a case referred by the Lord Chancellor. Here the same difficulty existed as in The Mayor of Congleton v. Pattison, in seeing how the demised premises were to be enhanced in value to the party who sought the benefit of the covenant, no such consequence could be apparent from the face of the demise. The pre-emptive price might be more than the land was worth; and the offer just at the close of the term, But the point was not raised and passed upon. It is
There are certainly some evils to be apprehended from a specific execution of these covenants in a court of chancery, beyond what might arise from leaving them to take their course at law. In the latter case, [158] they would end with personal damages. The court of chancery may-go farther, and impress them upon the land by decreeing specific execution, or by a perpetual injunction. In Taylor v. Owen and others (2 Blackf. 301), Owen had sold all his stock in trade and rented his store at New Harmony, in Indiana, to the plaintiff Taylor, for a term of years, and being the owner in fee of the whole settlement, covenanted with Taylor that he should have the exclusive right of trade for the settlement. Taylor was to pay a rent for the premises and privilege contracted for. It does not appear that the assigns of either party were mentioned. Owen afterwards let to Rogers who underlet to Moffatt, without restriction as to trade; and Moffatt opened a store. Taylor filed his bill 'against all three to restrain the trade. The injunction was denied as to Moffatt, Blackford, J., saying the covenant did not run with the land. No authorities are cited. The restraint on trade was quite extensive, assigns were not mentioned, and the remedy sought was a severe one. Doubtless the court were right in refusing to interfere on more grounds than one. No statute is mentioned as influencing the effect of such assignments. Looking at the parties and their assigns in a court at law-, and saying that a covenant by a lessor in favor of a lessee and his assigns for an exclusive trade within such boundaries as the law would allow upon principles of policy, should not avail the assignee, at least against the assignor, and indeed his assignees of the reversion, would seem to me in conflict with the almost unbroken current of English and American authority. There may be various grounds in this, as in other cases, why chancery should withhold its extraordinary aid. It will then leave the parties to their legal remedy. I do not see the necessity in the case cited, for saying that the covenant did or did not run with the land. It might be necessary to say it should not run with all the land of Owen—the whole township. But neither Rogers nor Moffatt was the assignee of any reversionary right which Owen had. He still retained that, and as yet had no assignee to be made liable.
On the whole, I think this action is sustainable as upon an inherent covenant, at least one that will pass by express words. In Grey v. [159] Cuthbertson, before cited from 2 Chit. R. 482, the covenant was by the lessor, but not for his assigns, to take and pay for all fruit trees and bushes growing at the end of the term which the lessee should plant. The assignee of the lessor was held not to be liable for want of the word assigns; though it was admitted that this word would have charged him. The decision was on the distinction in Spencer's case, that the thing did not exist at the time of the covenant.
The defendant’s covenant was, that the lessee and his assigns should enjoy the demised premises in a certain way, or under a certain exemption from competition in their business. The covenant was oiie for quiet enjoyment with specific advantages which were under the control of the lessor. We have assumed that such a covenant is not broken till by the act or the gross negligence of the lessor, those advantages are actually subtracted That is an ouster pro tanto, which then first becomes a cause of action. The covenant was then broken and not before. It was broken while it belonged to the plaintiff as the assignee; and therefore the objection that he purchased a chose in action, does not apply. To doubt the defendant by his lease to the Paddocks departed with the power to fulfil liis covenant; and in general, this is held a breach. Sir Anthony Main’s case, 5 R. 20; Moore, 422, S. C. by name of Maine v. Scot; Cro. Eliz. 449, 479, S. C. by name of Scot v. Sir Anth. Mayn, and Sir Anthony Manie v. Scot; Poph. 109, S. C. by name of Scot v. Sir Anthony Mainy, 2 Anderson, 18, case XII, S. C., was pressed upon us at the argument, as in point, to show that the lease was, therefore, per se, a breach. In Sir Anthony Main's case, the lessor had covenanted with the lessee, that, on certain conditions, the former would renew the lease during the term. But he sold and conveyed the re-[160] version, thus disqualifying himself; and it was held to be a breach of the covenant, so absolutely and directly, as to'dispense with the performance of all condition on the part of the lessee. That case is doubtless law; and so, I believe, has always been holden. It underwent great consideration, both in the O. B. and K. B., on error; but the covenant related to the title, and not merely to the possession or manner of enjoyment. It implied that the lessor should always retain the power to make the additional estate; whereas covenants relating to the possession, such as warranty and covenants for quiet enjoyment, are never broken till an actual ouster. A failure of title is not enough (Waldron v. M’Carty, 3 Johns. R. 471; Kortz v. Carpenter, 5 id. 120; Sedgwick v. Hollenback, 7 id. 376; Vanderkarr v. Vanderkarr, 11 id. 122). They differ from covenants of seizin "and those against incumbrances and the like, which go to the title (Greenby v. Wilcocks, 2 Johns. R l; Abbott v. Allen, 14 id 248; Hall v. Dean, 13 id. 105). If a covenant for quiet enjoyment of the whole land be not broken without actual ouster, a fortiori, is not a covenant that he shall not be let, hindered or disturbed in any particular part or to any particular extent or profit. In this case, the action is not in either count for the mere letting of the stream to the Paddocks. That would not be enough to make cut a breach; nor is it averred that the letting was for the express purpose of veneering; nor is there any such proof. The whole action both in respect to the pleadings and evidence, goes upon the actual disturbance. It is on the latter clause of the covenant that the defendant should not establish the place for sawing mahogany. Surely that was not done till the mill was put in motion; or the lessee or his assignee, the plaintiff, had felt the consequence, or at least till the mill was actually erected with the avowed intent to employ it for that purpose. I admit there is some nicety in the distinction between covenants going to the title and those which go to the enjoyment; but it is well established, and it is our duty to follqvv the principle on which it proceeds [161] as nearly as we can. There is a reason for the difference. Breaches of those which go to title are capable of being measured in their consequences at once. Those breaches going to possession merely, can not be known or estimated except by their actual operation. A similar distinction prevails between a bond of mere indemnity and one which goes to the existence of a fact, or imposes some specific or certain duty. Sir Anthony Main’s
Ought the opinion of witnesses to have been received as to the amount of damages?
The proposition, as I understand it, was to take the abstract opinion of the witnesses on an examination in chief, subject only to the right of cross-examination. It was not pretended that the knowledge of .both or either covered the whole ground, or if it did, they were not confined to such knowledge. They were at liberty to speak from facts known to them; and equally so, for aught I see, to what had been proved by others, and even to go into the regions of speculation and guess upon the whole amount of damages. It was certainly a question resting upon very complicated premises, as is evident from the numerous witnesses and the multifarious proof on the trial. What amount of business did the plaintiff's factory in truth perform? What was the extent of local demand for work ? What was the style of his workmanship; good or bad? If such as to command custom, then to what extent would his power, his time and other means reach? Was he sober and industrious? What deductions from his profits were made by the operation of the rival factory? or if that were out of the way what would be done by others either already established, or which would be established? With many other facts to which, at least to all of which, no individual could speak from actual knowledge. The ordinary, and in general, the only legal course is, to lay-such facts before the jury as have a bearing on the question of damages, and leave them to fix the amount. They are the only proper judges. They are impartial, and capable of entering into these ordinary matters. Witnesses are, in such cases, unavoidably governed by their feelings, and [162] their prejudices gathered from many sources. This was not a matter of science. That I admit forms an exception to the general rule, that facts, not opinions, must be received; the facts relevant to the question before the jury. What is opinion upon a matter of science? Even that does not rest in the abstract. It is founded on a knowledge of facts; of causes and their effects uniform in their connection. In Folks v. Chad (3 Doug. 157), Mr. Smeaton, the engineer, was called to speak to the effect of an embankment on Wells Harbor. It had decayed soon after the bank was erected, and nobody knew the cause. Mr. Smeaton was called to speak to it. That was objected to, and he was rejected at nisi prius. On motion for a new trial, Lord Mansfield, C. J., said, “a confusion now arises from a misapplication of terms. • It is objected that Mr. Smeaton is to speak not as to facts, but as to opinion. That opinion, however, is deduced from facts which are not disputed—the situation of banks, the course of tides, and of winds, and the shifting of sands. His opinion, deduced from all these facts, is that, mathematically speaking, the bank may contribute to the mischief, but not sensibly. Mr. Smeaton understands the construction of harbors, the causes of their destruction, and how remedied. In matters of science, no other witness can be called. An instance frequently occurs in actions for unskilfully navigating ships. The question then depends on the evidence of those who understand such matters; and when such questions come before me, I always send for some of the brethren of the Trinity House.” After giving several illustrations, he adds: ‘"Therefore, we are of opinion that his judgment fonned on facts, was very proper evidence.” Such are the principles of receiving scientific opinion: the only evidence of the kind I venture to say which can be received. It must in its very nature be confined to scientific men, extensive and trained observers, deriving skill from professional experience, or something in the nature of it. I can perceive no analogy between such a case and the one at bar. Surely there can be nothing like science in ascertaining
No case was cited by the counsel for the plaintiff, where evidence of opinion, as to the amount of- damages sustained, has ever been sanctioned as legal. The amount of indemnity, where it is not capable of being reached by computation, is always a question for the jury. If there be any rule without exception, it is this; and I have been unable to find any instance where the opinion of witnesses has been received. Bacon and Symonds, who were sworn in this case, might have possessed some knowledge in respect to the case peculiar to themselves. Every witness is supposed to have such knowledge; but he does not therefore become an expert, and entitled to speak on the general point of damages. If one may speak, another may. It is no reason for receiving such evidence that the defendant may cross-[164] examine. That he might do of course; and the trial might thus be protracted to an amazing length in taking opinions from the neighborhood. For aught I see, the question would have been equally proper, if it had been addressed to a majority of the witnesses actually sworn on the trial.
I think the cause must be re-tried on this question of damages.