22 W. Va. 600 | W. Va. | 1883
The real question involved in this case is: Should the courts at the instance of the "West Virginia Transportation Company enforce the grants and contracts made with it by E. Lj. Gale and wife dated respectively January 31, 1870, and October 23, 1873 ? These two contracts are identical in lan
“We, the undersigned, for and in consideration of the sum of one dollar, receipt oí which is hereby acknowledged, do hereby grant unto the West Virginia Transportation Company, a company incorporated under special act of the Legislature of West Virginia, passed February 26, 1867, and their assigns, the exclusive right of way and privilege to construct and maintain one or more lines of tubing for the transportation of oil, water or other liquids along, through and under lands owned by the undersigned in Ritchie county in the State of West Virginia; also the right to construct and maintain a telegraph along said tubing, and the privilege to remove said tubing and telegraph at pleasure.
“Witness our hands and seals this 31st day of January, 1870.
“E. L. Gale. [seal.]
“Mary Gale. [seal.]”
It was duly acknowledged and admitted to record in Ritchie county on March 15, 1870.
When these grants and contracts were made, Mary Gale, the wife of E. L. Gale, owned á tract of' land lying partly in Wood and partly in Ritchie county, West Virginia, containing about two thousand acres, which had been conveyed to Mary Gale, the wife of E. G. Gale, as long ago as March 7, 1854. Subsequently to the recordation of said grants and contracts of January 31, 1870, and October 23, 1873, that is on January 26, 1875, said Gale and wife in consideration of-eight thousand one hundred and forty-six dollars and fifty-six cents conveyed to James M. Stephenson, Thompson Leach, W. Vrooman, C. H. Shattuck and II. PI. Moss a moiety of one thousand acres of this land with general warranty of title, which deed was duly recorded on July 6, 1875. These grantees afterwards for convenience in managing said property assumed the name of the Wood County Petroleum Company. They claim, that, if these grants and contracts of date January 31, 1870, and October 23, 1873, were binding grants and contracts, which the courts would enforce between the original parties to them, nevertheless they would not be
On the other hand the description of the land contained in these grants and contracts, the West Virginia Transportation Company insist, is legally equivalent to “all the lands owned by Gale and wife in Pitehie and Wood counties,” and this being the legal signification of the description of the land in these grants and contracts, that the recordation of them was constructive notice to every one of the existence of these grants and contracts. To sustain this they rely on Warren v. Syme, 7 W. Va. 474. They also insist, that, even if this were not so, the evidence shows, that they were after the making of said grants and contracts in the actual possession of all this “Gale tract,” so tar as the exclusive possession and control of many lines of tubing through it was concerned, and that subsequent purchasers of any portion of this “Gale tract” were bound to enquire into the nature of their possession; and had they done so, they must have discovered, that they claimed the exclusive right of way for tubing to transport oil either through this tract or such as was produced upon it; and therefore they are chargeable with implied notice of the claim of The West Virginia Transportation Company. To sustain this position they rely upon Daniels v. Davison, 16 Ves. 249; Wilson v. Wall; 6 Wall. 83; French v. Loyal Co., 5 Leigh 627; Campbell v. Fetterman’s Heirs, 20 W. Va. 398.
From the views I take of this case I deem it unnecessary
These grants and contracts are on their face ambiguous; and it has been held, that, when this is the case, the courts will look at the surrounding circumstances existing, when such ambiguous contracts were made, at the situation of the parties and the subject-matter of the contract, and sometimes even call in aid the acts done by the parties under such contracts, as affording a clue to the intention of the parties; but the court never resorts in such cases to the verbal declarations of the parties either before or after or at the time of the execution of the contracts to aid it in construing its language. See Crislip’s Guardians v. Cain, 19 W. Va. page 483, and the authorities there cited.
'The contracts were in the case before us made respectively on July 81,1870, and October 23,1873. The parties to them had made on September 23,1868, another contract in precisely the same language, except that by it was granted “the right of way to construct and maintain one or more lines of tubing for the transportation of oil along, through and under lands owned by them in Ritchie county,” while these new contracts under consideration 'granted instead of such “ right of way” an “exclusive right of way.” When these contracts were made the grantors owned a large tract of land of about two thousand acres in Ritchie and Wood counties, West Virginia, which was and for a long time had been very productive in valuable petroleum oil. The land had been divided into small lots and leased to numerous parties for terms generally of twenty years, who sunk wells on their respective lots paying as a royalty or rent for working such wells one fourth of the oil produced from them. The production of oil from
When oil was first struck on this Gale tract, he induced this company to lay a line connecting this tract with Petroleum. ITe then wdth his wife executed the contract -and grant, whereby he gave said company a right of-way through said land; but this right of way was not an exclusive■ right of way. Afterwards oil was struck on other portions of said Gale tract of land; and he proposed to this company, that,
On Juno 26, 1875, E. L. Gale and wife conveyed a moiety of one thousand acres of this “Gale tract” for eight thousand one huudrcd and forty-six dollars and fifty cents to persons since constituting the Wood County Petroleum Company; and they believing that the West Virginia Transportation Company was exacting from them and their tenants illegal charges for transportation; and by mixing different oils and by other violations of their charter injuring them, concluded to lay down pipes to the various wells on their part of this “Gale tract,” and connect them with the pipes of the Ohio River Pipe-Line Company, another corporation organized for transporting oils. This was about being done, when it was prevented by the injunction awarded in this suit.
These facts show, that the grants and contracts of January 31, 1870, and October 25, '1873, made by E. L. Gale and wife to and with the West Virginia Transportation Company, while ambiguous on their face when interpreted by the aid of the circumstances of the case, and the situation and conduct of the parties in carrying them out were designed not only to confer on the West Virginia Transportation Company the right of way for their pipes through this “Gale Tract of two thousand acres in Ritchie and Wood counties but also to confer on them the exclusive right ol way, that is to say, to bind the grantors in their deeds and contracts not themselves to use pipe-lines to transport oil from said “Gale tract” and not to grant to any other person or persons authority to' lay pipe-lines through said “Gale tract” to transport petroleum oil produced either on it or any other lands. That this is the true interpretation of these grants and contracts is, I think, apparent from Western Union Telegraph Co, v. Chicago and Paducah Railroad Co., 86 Ill. 246,
It remains for ns to decide, whether these are such contracts, as the court ought on the application of the West Vir-giniaTlansportation Company to enforce against the obligors or those claiming under them, assuming that those so claiming are doing so with notice, at the time they purchased, of these grants and contracts with the West Virginia Transportation Company and of the character of their claim under these contracts.
The reason why, it is insisted by the counsel of the appel-i lees, these contracts ought not to be enforced is, that they are contrary to public policy. The common law will not permit individuals to oblige themselves by a-contract either! to do or not to do anything, when the thing to be done orj omitted is in any degree clearly injurious to the public)] (Chappel v. Brockway, 21 Wend. P. 159.) It is upon this principle that it is settled, that contracts in restraint of trade are in themselves, if nothing shows them to be reasonable,; bad in the eye of the law; and though such contract be for a1 pecuniary consideration, or, what is the same, thing, though \ it be under seal and stipulate only that'a certain trade or | profession shall not be carried on in a particular place, if i there be no recitals in the deed or contract or no averment and proof showing circumstances, which render such contract reasonable, the contract or instrument is void, though it be / but in partial restraint of trade. (Horner v. Graves, 7 Bing, 744; Pierce v. Fuller, 8 Mass. 223.) Contracts in restraint of trade are for the most part contrary to sound policy and are consequently to be held void. This is the general rule. There may be cases, where the contract though in apparent restraint of trade to some partial extent is neither injurious to the public at large nor even to the obligors, and when this is made to appear affirmatively, the courts hold such contracts valid though apparently to some extent in restraint of trade. If the contract go to the total restraint of the trade in the State, where it is made, it is necessarily void, whatever be the condition on which it was based. Such a contract must be injurious to the citizens of the State, in
Though a contract in restraint of trade be in all other respects reasonable, and be not otherwise in any'manner prejudicial to either the public or the obligor, yet the simple fact, that it restrains trade over an unreasonable, extent of territory, though it be not a general restraint of trade, will render such contract invalid as contrary to public policy. Thus in Lawrence v. Kidder, 10 Barb. 641, the court held, that a contract, whereby the party covenanted that he would not sell mattresses in New York west of Albany, Avas held because of the large extent of the territory, in Avhich this restraint-operated, as contrary to public policy and void. But while the burden is on the party claiming the benefit of eAmry contract in restraint of trade to show, that under the particular circumstances of the case the partial restraint of trade is of no prejudice to the public, yet by Avhat circumstances this burden would be met Avould seem to be difficult to state, and has apparently depended a good deal on the particular judge, AA'ho has had to pass judgment on the circumstances. Thus
In The Oregon Steam Navigation Company v. Winsor, 20 Wall. 64, the court laid down the rule in such cases in a manner substantially corresponding with the views which I have expressed in the syllabus, saying “Questions about/ contracts in restraint of trade must be judged according to? the circumstances, iu which-they arise, and in subservience to; the general rule, that there must be no injury to the public by its being deprived of the restricted party’s industry, and that the party himself must not be precluded from pursuing his occupation and thus prevented from supporting himself and family.” But in applying these principles the court held, that when A., engaged in navigating waters in California alone, sold in 1864 a steamer to B. who was engaged in the business of navigating the Columbia river in Oregon and Washington territories, and B. agreed that for the period of ten years he would not employ this steamer in the waters of California, the contract was not void, this stipulation being reasonable and not prejudicial to the public interest, as the vender of the steamer, who thus contracted "not to navigate with it the waters of California, proposed, when he purchased it, to navigate with it the waters of Puget sound.
In Wright v. Ryder, 36 Cal. 342, a California company engaged in navigating the waters of California sold one of its steam-boats to an Oregon company engaged in navigating Oregon waters, and the purchasers agreed not to navigate the waters of California for ten years with this steam-boat; and the court held this contract to be void, being contrary to public policy and an unreasonable restraint of trade.
In all such cases the difficulty lies in determining what are reasonable and what unreasonable restrictions in respect to the area, within which the trade is to be confined. As is said by Justice Bradley in the Oregon Steam Navigation Com-
I will here say, that this last condition is the one which the courts must ever keep in view, that is, that the restriction is not prejudicial to the interest of the public. If it is, the contract is contrary to public policy and «'ill not be enforced. The cases show, that whether the public interest is prejudiced by a contract, which restricts a business or profession within partial limits, will often depend very largely on the character of the profession or calling. Thus in Bunn v. Guy, 4 East 190, a contract made by an attorney, solicitor and convey-ancer, that he would not practice his profession in London or within one hundred and fifty miles thereof, was'held valid as not an unreasonable restriction; but in Sainter v. Ferguson, 7 Man., G. & Scott 716, (62 Eng. Com. L. R.) the question was discussed whether Macclesfield or within seven miles thereof was a reasonable restriction, within which a surgeon ar.d apothecary was to be restrained from practicing his profession, the court holding that it was. The reason why the courts regard as a reasonable restriction to the practice of the legal profession a territory so much larger than would be allowed as a reasonable restriction to the practice of a surgeon’s profession is obviously because a lawyer can practice his profession effectually at along distance from his residence, say fifty or one hundred miles, by correspondence and occasional visits, while a surgeon can practice his profession at
According to the modern and better authorities, if the restriction of the particular trade or business be partial and reasonable, when all the circumstances are considered including-the restriction and object of the parties and the nature of the business, which is restricted, as well as the extent oi the restriction in reference to time and space, then such contract imposing such reasonable restrictions will be upheld without regard to the adequacy or inadequacy of the consideration. (Hitchcock v. Coker, 6 A. & E. 438; Leighton v. Wales, 3 M. & W. 545; Archer v. Marsh, 6 A. & E. 959.) In Pilkington v. Scott, 15 M. & W. 657, the law is thus stated by Alderson, B.: “That if it be an unreasonable restraint of trade, it is void altogether; but if not, it is lawful; the only question being whether there is a consideration to ouppt-^^†. and the adequacy of the consideration the court will noVH quire into, hut will leave the parties to make the bargains for themselves. Before the case of Hitchcock v. Coker, 6 A. & E. 439, a notion prevailed, that the consideration must be adequate to the restraint; that was in truth the law making the bargain instead of leaving the parties to make it and seeing only that it is a reasonable and proper bargain.” And this is the law in this country. See Hubbard v. Miller, 27 Mich. 15. Guerand v. Dandelet, 32 Md. R. 562. It may be regarded as established as a general rule, that when’a covenant in restraint of trade is reasonable and is valid at common law, it will be specifically enforced in equity by enjoining the obligor from violating such covenant. See Harrison v. Gardner, 2 Madd. R. 444; Whitekar v. Howe, 3 Beav. 383; Guerand v. Dandelet, 32 Md. 562; Beard v. Dennis, 6 Ind. 200; Butler v. Burleson, 16 Vt. 176.
The cases establish, that the restrictions, which may be put upon any trade or business, are only such as in thejudgment of the courts will not be prejudicial to the public; and that the extent of the restriction allowed must therefore de
But on the other hand the courts might uphold as valid a
In Leather Cloth Co. v. Lorsont, Law Rep. 9 Eq. 345 and Morse Twist Drill and Machine Co. v. Morse, 103 Mass. 73, these principles are laid .down, that while contracts are void, if their object is to deprive'tie State of the benefit of the labor, skill or talent of a citizen, yet public policy requires, ■ that when a man has by skill or other means obtained something, which he wants to sell, he should be at liberty to sell it in the most advantageous way in the market, and in order to enable him to do this, it is necessary that he should be able to preclude himself from entering into competition with the purchaser, provided the restriction is not unreasonable by going beyond the extent to which it would bq a benefit to the purchaser. If a general resü’aint in such a case is necessary for the benefit of the purchaser, it will be enforced, if inserted in the contract. In such cases the public interest on the whole is regarded as nohprejudicial but rather promoted by even a general restraint, if necessary to enable the inventor to realize from his invention; for the public are interested, that inventors should be fairly compensated. On the other hand the cases lay it.down as a general rule, that
Prom the principles, which underlie all the cases, the inference must be necessarily drawn, that if there be any sort of; business, which from its peculiar character can be restrained to no extent whatever without prejudice to the public interest, then the courts would be compelled to hold void any' contract imposing any restraint however partial on this peculiar business, provided of course it bo shown clearly, that the peculiar business thus attempted to be restrained is of such a character, that any restraint upon it however partial must be regarded by the court as prejudicial to the public interest:
Are there any sorts of business of this peculiar character? It .seems to me that there are, and that they have been recognized as possessing this peculiar character both by the statute-law and by the decisions of the court. Are not railroading and telegraphing forms of business, which are now universally recognized as possessing this peculiar character? Look at the Legislature of our own State in reference to these sorts of business and see if it does not distinctly recognize them as possessing this peculiar character. Our statute-law provides for the condemnation of lands by railroad and telegraph companies; and by pursuing the provisions of the statute-law these companies may acquire lands for their purposes without the consent of the owners of such lands. (Oh. 52 and eh. 42 of the Code of West Virginia.) In conferring on such, companies the power to exercise at their pleasure the State’s power of eminent domain and the power thus to take land without the owner’s consent for railroading'-and telegraphing the Legislature has emphatically declared, that the business of railroading and telegraphing is business in which the people of the State have such great and direct interest, that no individual land-owner shall prevent this business of railroading and telegraphing being carried on at every locality in the State, where any company may choose to en
The statute law assumes as self-evident, that the public interest is promoted in the building of a railroad or telegraph through each particular parcel of land; and the courts must therefore act on this assumption in every case, and as a consequence upon the principle, that the public interest is promoted by the business of railroading and telegraphing being done on each parcel of land, the courts must hold in accordance with the principles underlying all the decided cases, that no person or corporation can restrict this business being done on any parcel of land, however small, by a contract, which by giving to another an exclusive right of way or in any other manner requires the obligor to refuse to permit the doing of such business on said land by any and all companies, who are willing to pay a just compensation for the land, which may be actually used in the doing of such business.
In the Western Union Telegraph Company v. American Union Telegraph Company, 65 Ga. 160, (38 Am. R. 781) it was expressly decided, that “ a contract by a railroad company granting to a telegraph company the exclusive use and occupation of its right of way for telegraph purposes is void as in restraint of trade an d against public policy. ” The court after first showing the public necessity for the telegraph saj's: “ Shall the means then, by which information is transmitted, be monopolized by a contract ? When such exclusive rights
The foregoing decision is, as I understand the case, followed in the case of Western Union Telegraph Co. v. Chicago and Paducah Railroad Co., 86 Ill. 246 (29 American R,. 31). There the railroad company had contracted with the telegraph company, that it would furnish and distribute along its track cedar poles, and furnish all the labor necessary to erect the poles and place wires and insulators thereon, and furnish the labor to keep the telegraph-wire in repair, the wire, insulators, batteries and instruments and all other material beiug furnished by the telegraph company, the telegraph company to give the use of new patents. And the railroad company agreed to assure to the telegraph company, so far as it legally might, an exclusive right of way along the
If I am right in the views, which I have expressed, it would be contrary to public policy for the owner of a water grist-miil to contract with another person the owner of a mill-site in the neighborhood, that he would not erect on it a water grist-mill, because the business of grinding corn like that of railroading is regulated by the statute-law as one in which the public has a direct interest, and the necessary land may be condemned for the erection of such water grist-mill.
¥é will now proceed to apply these principles of law to the case before us. Examining the contracts between Gale and wife and the West Virginia Transportation Company of date January 31, 1870, and October 25, 1873, the first thing which strikes us is, that while they are for the exclusive right of way and privilege to maintain lines of tubing for the transportion of oil, &c., through this Gale tract, yet these contracts expressly reserve the privilege to remove such tubing at the pleasure of the West Virginia Transportation Company. Now if we were to assume, that a proper contract might be made for such exclusive right of way, we should be compelled to hold, that these were not proper contracts, because of this proviso authorizing the West Virginia Transportation, Company to remove at their pleasure this tubing, and of course at their pleasure to, decline to transport the oil raised on this “Gale tract” of land. It is true that this does not make these contracts, void because of a want of
But there are much more serious objections to these con-¡ tracts than these provisions. And had these obnoxious pro-¡ visions not been in these contracts, they must still have been] held void as contrary to public policy. The West Virginia1! Transportation Company could not ask, that the courts] should enforce these contracts against Gale and wife, much] less against their assignees, because these contracts are void*, as contrary to public policy. It is an attempt to restrain; trade of a particular form, which from its character is recog- j nized by the statute as such a business as can not be re-/ strained even partially. A business, in which the general public has such a direct interest, that the statute has. provided, that it may be carried on upon any tract of land in the State without the owner’s consent. Hence it follows, that any contract made by the owner intended in any degree to restrain this business is contrary to public policy. This business of transporting oil in tubes is, like railroading and telegraphing, a business recognized by our statute-law asoné in which the public has so great and direct an interest, that
Our conclusion therefore is, that such a contract, so far as it confers on the corporation a right of way through the grantors’ land is valid and binding on him and on every subsequent assignee or grantee of the land; but so far as it attempts to deprive the grantor or his assignee or any other corporation from exercising the right to lay other tubing through said land for the transportation of oil, such contract is wholly inoperative and void, being contrary to public policy and an unreasonable restraint on trade. I feel confident that I am justified in holding this attempted restraint on the original grantor and covenantor as inoperative and void for this reason and of course, if this be true, it cannot bind any subsequent grantee of the land, or impede any other corporation in acquiring in a legal manner a right of way for the transportation of oil through such land.
But even if such contract ■were obligatory on the original' covenantor or grantor, it could not possibly be binding upon a grantee of the land or any other corporation seeking a right of way through such land. It is impossible to regard it as a covenant running with the land; and the grantees of the land, though they had the most explicit notice of such contract, would not be under any obligation to fulfill it. The effort is to construe this grant of an exclusive right of way as the equivalent of first, a grant by the grantors of a right of way for tubing for the transportation of oil, which it certainly is, and secondly, as a contract on the part of the grantors, that the corporation should lor all time have the right to transport for legal charges in their tubes all the oil, which should thereafter be produced on the tract of land. It seems to me obvious, that this second supposed provision in this grant and contract cannot by any fair interpretation be found therein. For surely under this contract and grant the grant
I say, that they would be under no légal obligation to fulfill such a covenant, for the simple reason that it is not a covenant real running with the land. The leading case on covenants ranning with the land is Spencer’s Case, 5 Rep. 16; (1 Smith’s Lead. Cas. 115). But this case throws comparatively little light upon the question we are considering. For it was a case arising under a lease between landlord and tenant. It was a lease of a house and certain lands by deed for twenty-one years; and by the lease the lessee covenanted for himself and his assigns, that he would build a brick wall on a part of the leased land. The lessee assigned his term to another. The question involved was, whether the assignee of this lease was bound to build this brick wall and could be sued by the landlord in an action of covenant, if he refused so to do. The court decided, that he was bound to build the wall, and that this was a covenant real running with the land, and that he might therefore be sued upon it by the landlord. This decision was based on the ground
They have however but little bearing on the question we are considering, because the cases all show, that there is a gfeat difference between a covenant in a lease, a question between landlord and tenant, and a covenant in an absolute conveyance of land, a question between grantor and grantee,' where the point to be decided is, whether or not the covenant runs with the land, that is, whether it bo a covenant real or merely a covenant personal. The decided cases lead to the conclusion that when the covenant is contained not in a lease but in an absolute conveyance, as in the case before us, or in an instrument of any sort other than a lease, the burden of a covenant can never run with the land, so as to bind in every case the purchaser of the land as assignee of the covenantor. The burthen of a covenant charging land made by the owner with an entire stranger to the land so charged will never run with the land or rest upon the parties taking the land by assignment. To charge the land with the burthen of any covenant, there must be some privity of estate between 4ÜM the covenantor and the assignee of the land so burdened. These conclusions are deducible from the cases of Bally v. Wells, 3 Wilson 28; Keppell v. Bailey, 2 Myl. &
Oí course there is a distinction between a servitude or easement imposed on land and a covenant real running with the land; but this difference has not always been kept in view, and it is from losing sight of this difference, that the views, which I have above expressed, have been sometimes supposed not to accord with decided cases.
The following are some cases, which being misunderstood have been sometimes supposed not to consist with the views which I have expressed: Tulk v. Moxhay, 2 Phil. 774; What-man v. Gibson, 9 Sim. 196; Schreiber v. Creed, 10 Sim. 35; Woodruff v. The Water Power Company, 2 Stock. 489; Hills v. Miller, 3 Paige 254; Watertown v. Cowen, 4 Paige 510, and Barrow v. Richard, 8 Paige 350. This whole subject is ably reviewed in Brewer v. Marshall and Cheeseman, 18 N. J. Eq. R. (3 E. G. Green) 337; and the conclusions reached are those, rvhieh I have above expressed. It is certainly true, that there is a class of cases, in which equity has charged the conscience of a purchaser of land with agreements relating to this land, when it was clear, that the agreement did not 'create a servitude or easement on the land, and when it was also clear, that the agreement or covenant did not run with the land. Thus, as laid down in 1 Story’s Eq. Jur. § 395, if lauds are held in trust, or the owner of lands' is under contract to sell or lease them, and a subsequent purchaser has notice of these facts, he will in equity stand in the place of the grantor and be chargable with the same duties and contracts! The reason assigned by Judge Story § 395 is, that “In such cases the purchaser will not be permitted to protect himself against such claims, but his own title will be postponed and made subservient to theirs. It would be gross injustice to allow him to defeat the just rights of others by his own iniquitous bargain. ITe becomes by such contract particeps criminis with the fraudulent grantor.” It may at first seem, that this class of cases bears a close resemblance to the case we are dissussing, as here the grantors of the land, when they purchased it, are assumed to have
There are however other cases, in which a court of equity has thus interposed, which are not so easily shown to be unexceptionable. Thus where there is an agreement between the owners of several lots, that the buildings to be erected on them shall not be applied to certain specified uses, courts of equity here hold that such agreement is obligatory not only on the owners, who entered into' such agreement, but also on their alienees, who have purchased with notice of such agreement. (Whatman v. Gibson, 2 Sim. 196, and see also Tulk v. Moxhay, 2 Phil. 774; Coles v. Sims, 5 De G. M. & G. 1; Mann v. Stephens, 15 Sim. 377; Western v. Macder-mot, Law Rep. 1 Eq. 499; Bristow v. Wood, 1 Coll. 480;
It seems to me that a broad extension of the application of the principle, .upon which the courts of equity seem to have acted in some of thebe cases, would lead to much mischief. If, for instance, it was extended to the supposed case, which we are considering, it would be in a.high degree mischievous, that is, to the case where the grantor has covenanted with the grantee a corporation, that he and every assignee of his land shall permit the grantee, to transport the product of his lands to market. If we did this, we would in effect destroy the entire doctrine, which prevails in courts of law, that covenants will not run as a burden upon land, when it is sold and conveyed by the covenantor, a doctrine eminently whole
As a general rule a court of equity could very properly decline to enforce specifically such covenants against purchasers of lands, though they had notice of them, when they purchased, because it cannot be said, that "the purchasers have purchased the land knowing the existence of such covenant and then unconscientiously refused to fulfill it; for it may well be replied, that the convennutor, when he made such covenant, knew, that it was a mere personal covenant not running with the land, and that a purchaser of the land would not therefore be bound by such covenant; and knowing this, when he made the covenant, how can a court of equity properly say, that he has been wronged, when a purchaser refuses to do that, which the covenantor always knew he would not be bound to perform.
This whole subject has been considered by the court of appeals of New Jersey in the ease of Brewer v. Marshall and Cheeseman, 19 N. J. Eq. 537 (4 C. E. Green). In that case the covenant was, that neither the vendor of the real estate -nor his assigns would sell any marl from off the premises adjoining the tract conveyed. The court decided, that this was no easement or covenant running with the land; and
“Prom this review of the authorities, I am satisfied that a court of equity will sometimes impose the burden of a covenant relating to lands' or the alienee of such lands on a principle altogether aside from the existence of an easement, or the capacity of such covenant to adhere to the title. So far I think the law is not in doubt, and the only question in this case, which I have regarded as possessed of any material difficulty, is whether the covenant now in controversy is embraced within the proper limits of this branch of equitable jurisdiction. The enquiry is, have courts of equity ever gone the length of enforcing contracts similar to the one now before us? My conclusion is the question should be answered in the negative, and for the reasons following, viz : First, because the enforcement of this covenant between the parties to this suit would establish a principle which must inevitably overturn, by the application of equitable principles, the entire doctrine which prevails in courts of law, that covenants, as a general thing, will not run as a -burthen upon land. That this would be the result I think will become at once apparent to any person who will carefully compare the present covenant with those which have been decided to be incapable of enforcement as not running with the title. It has been remarked and I think upon solid grounds, that with regard to mere legal remedies, there appears to bo no authority for saying that the burthen of a covenant will run with land in any case except that of landlord and tenant. ■ Notes on Spencer’s Case, 1 Smith’s Leading Cases 138. This is the admitted rule at law; but if this complainant is to be relieved, then in equity we have the opposite rule, that- all covenants touching land, which are known to the purchaser at .the time of the transfer to him, become attached to the land, and will descend withthetitle under similar conditions to the remotest alienee. The extent of such a doctrine is this, that the owner of land may impress upon it any of his notions, and equity*638 will'see that the land retain such impress in the hands of every subsequent holder. Let us test the principle by example. A. is the owner of land, and he covenants with B. that neither he nor his assigns will ever raise any grain on this land or will ever permit a dwelling-house to be put thereon. It is clear, that at law such covenants as these will not become parcel of the land so as to fetter its devolutions. The remedy for their breach is intrinsically legal, is by suit against the original covenantor. But if an agreement that marl shalfnot be sold from a certain tract of land will pass as a burden upon the land in equity, it will be difficult to hold in the examples just put the same result is not to obtain. These incidents can be annexed to land as multiform and as innumerable as human caprice.”
His second reason is, that this covenant was a restraint on trade, a reason fully as applicable to the case before ns. Upon this subject Lord Chancellor Brougham thus expresses himself in Keppel v. Bailey, 2 Myl & K. 517: “Assuming that the Keppels covenanted for their assigns of the Beafort "Works, could they by a covenant with persons who had no relation whatever to these works except that of having a lime-quarry and a railway in the neighborhood bind all persons who should become owners of these works either by purchase or descent, at all times to buy their lime at the quarry and carry their iron on the railway; or could they do more, if the covenant should not be kept, than give the cove-nantor a right of action against themselves? Consider the question first upon principle. There are certain known incidents of property and its enjoyment, among others, certain burdens wherewith it may be affected, or rights which may be created or enjoyed with it, by parties other than the owner, all of which incidents are recognized by the law. - But it must not therefore be supposed that incidents of a novel kind can be devised and attached to property at the fancy or caprice of any owner. It is clearly inconvenient both to the science of the law and to the public weal, that such a latitude should be given. There can be no harm in allowing men the fullest latitude in binding themselves and their representatives, that is their assets real and personal, to answer in damages for breach of their obligations. This tends to no.
“But if one man may bind his messuage and land to take lime from a particular kiln another may bind his to take coals from a certain pit, while a third may load his with obligations to employ one blacksmith’s forge, or the members of one corporate body, in various operations on the premises, besides many other restraints as infinite in variety as the imagination can conceive. Eor then there can be no reason whatever in support of the covenant in question which would not extend to every covenant that can'be devised. The difference is obviously very great between such a case as this and the ease of covenants in a lease whereby the demised premises are affected with certain rights in favor of the lessor.”
The reasons thus forcibly stated seem to me lead us necessarily to this conclusion, that the grants and contracts made by E. L. Gale and Mary Gale, his wife, to and with the West Virginia Transportation Company dated respectively on January 31, 1870, and October 25, 1873, referred to in the bill in this cause imposed on none of the defendants in this cause any obligation of any sort excepting simply the duty of permitting the West Virginia Transportation Company to' peaceably enjoy the rights of way for its tubing through this “Gale tract” of land, an easement which had by these grants and contracts been conferred on them long prior to the time the defendants had any interest in said land, and of course the right to maintain a telegraph line along said tubing.
I conclude also that this right of way and the privileges
The answers to the bill contain much immaterial and impertinent matter, though much of it was brought out by immaterial and impertinent allegations in the bill. Some of these impertinent matters are the many allegations in the answer, which are made to show, that the plaintiff did not, as alleged in his bill, furnish rightful transportation through its tubing at lawful rates but the reverse. The questions involved in the issue made on these immaterial points by these allegations in the bill and answers are properly the subject of enquiry in another suit in this Court. The exceptions to the answers on account of these impertinences should have been sustained. And most of the evidence taken in the cause was taken to sustain or refute these impertinent allegations or to prove or disprove another matter equally unimportant, whether the Ohio River Pipe Line Company was acting in. concert with the Wood County Petroleum Company in laying .the lines of tubing intended to transport oil produced on this “Gale tract” of land. As the evidence clearly showp, that the laying of these'pipes of tubing, by whomever laid, in no manner interfered with the tubing of the West Virginia Transportation Company except by its legal competition, it is clear according to our views, which I have expressed, that the West Virginia Transportation Company has no ground of complaint in this suit.
The final decree rendered by the circuit court of Ritchie county in this cause dissolving the injunction, which had* been awarded the plaintiff, and dismissing the bill and adjudging, that the plaintiff pay to the defendants their costs expended in this suit, is correct and must be affirmed; and
Affirmed.