150 S.E. 531 | W. Va. | 1929
This appeal involves the construction of the following provision in a deed conveying a fee simple estate:
"and the said party of the second part hereby covenants with the said parties of the first part that the property hereby conveyed shall not be conveyed, demised, devised, leased or rented to any person of Ethiopian race or descent for a period of fifty years from the date hereof; * * *"
The deed contains no condition or limitation in event of breach of the said covenant. The same provision was contained in each of several deeds made by Anna E. Jones and others for eleven lots constituting Block No. 5 of the Jones and Rau Addition to the city of Huntington. Deed for lot No. 4 was made to W. W. Warden who thereafter conveyed it to E. B. Honaker, who, together with his wife, Ethel B. Honaker, later made conveyance of the said lot by deed dated November 1, 1926, to Lewis White and Cora White, his wife, who are colored people. The plaintiff is the owner of lot No. 6, which, it appears from the record, he has owned since some time in 1926, the exact date not appearing. The plaintiff and the defendants, Lewis White and Cora White, occupy their respective lots for residential purposes.
By his bill, the plaintiff prays, inter alia, that the said deed from Honaker and wife to White and wife be held invalid and void, that the said grantees be enjoined from renting or leasing the said property, and for general relief. Upon final hearing the circuit court declared said deed to be null and void and further decreed "that the defendants E. B. Honaker and Ethel B. Honaker be and they are restrained and enjoined from conveying, demising, devising, leasing or renting the said Lot Four as shown on the revised map of Block Five, Jones and Rau Addition, contrary to the provisions of the said restriction set out in the plaintiff's bill, and that the said Lewis and Cora White are enjoined from taking or attempting to take title to the said premises and from renting or leasing the same contrary to the provisions of the said restriction." *130
In the strictest sense a negro is not an Ethiopian, though both are Africans. In popular parlance the distinction is not observed and the American negro is frequently referred to as an Ethiopian, — a fact in no wise to the discredit of the negro, as Ethiopian civilization, culture and accomplishment are recorded from early historic periods. The prominent place of the Ethiopian in early civilization appears in both sacred and secular chronicle. The term "Ethiopian" as used in the deed will be deemed to have been used in its popular sense and to include negroes.
It is to be noted that the above quoted provisions of the deed made by Jones and Rau embraces a restriction upon alienation and is not a mere restriction of use of the property conveyed. It was urged in oral argument that the words "leased or rented" imply occupancy by the lessee. This is a non-sequitur. It frequently happens that a lessee does not himself occupy the leased premises. If not prevented by the terms of the lease, he may assign the same or sub-let the premises. We are therefore not called upon to consider the validity of a restriction or limitation of use of property imposed by deed conveying the same. Reasonable limitations of use are generally upheld, 18 Corpus Juris, p. 361; 8 Ruling Case Law, 1115; Minor on Real Property, sec. 562; Los AngelesInvestment Co. v. Gary, (Cal.) 9 A.L.R. 115; Parmalee v.Morris, (Mich.) 38 A.L.R. 1180. Such restrictions usually appear in the form of covenants not to do particular things, and such covenants are ordinarily enforced in equity; Robinson
v. Edgell,
Conditions or restrictions completely destroying the right to alien property, even for a limited time, are, we believe, held void by all the courts as inconsistent with complete ownership; as, for example, a grant or devise of land to A with condition that he shall not alien the same for ten years. 18 Corpus Juris, p. 361; 8 Ruling Case Law, 1114; Delvin on *131
Real Estate, sec. 965; Latimer v. Waddell, (N.C.) 3 L.R.A. (N.S.) p. 668 and note; Totten v. C. C. Co.,
There is quite an array of cases holding that limited restraints on alienation are valid, that is, reasonable limitations applying only to a particular person or class of persons, or for a limited time. This line of decisions is recognized by numerous texts and with varying comment. 18 Corpus Juris, p. 361; 8 Ruling Case Law, 1114; II Minor's Institutes, p. 250; Devlin on Real Estate, sec. 965. Chancellor Kent thus comments on the subject: "Fee Simple is a pure inheritance, clear of any qualification or condition, and it gives a right of succession to all the heirs generally, under the restriction that they must be of the blood of the first purchaser, and of the blood of the person last seized. It is an estate of perpetuity, and confers an unlimited power of alienation, and no person is capable of having a greater estate or interest in land. Every restraint upon alienation is inconsistent with the nature of a fee simple; and if a partial restraint be annexed to a fee, as a condition not to alien for a limited time, or not to a particular person, it ceases to be a fee simple, and becomes a fee subject to a condition." 4 Kent's Commentaries 5. The distinguished authority further says at page 132: "If, however, a restraint upon alienation be confined to an individual named, to whom the grant is not to be made, it is said by very high authority (referring to Coke on Littleton, sec. 361) to be a valid condition. But this case falls within the general principle, and it may be very questionable whether such a condition would be good at this day." The section of Littleton referred to reads: "But if the condition be that the feoffee shall not alien to such an one, naming his name, or to any of his heirs, or of the issues of such an one, or the like, *132 which conditions do not take away all power of alienation from the feoffee, such condition is good." In Ruling Case Law,supra, this summary is contained: "On principle and authority, the better rule is that a direct restriction for any time, however short, is void."
In Vol. 3, Tiffany on Real Property (2nd Ed.), sec. 592, the author says: "But a condition directed at a transfer to a particular person or persons has been regarded as not so substantially interfering with the freedom of alienation as to be within the general rule." In Minor on Real Property (2nd Ed.), Vol. 1, sec. 555, we find: "It is frequently said that a reasonable restraint on alienation is valid. * * * If the condition merely excludes certain designated persons it is good. But if the condition excludes all except certain specified persons it is bad. Thus the distinction turns on the degree of restraint. * * * There are cases which go beyond upholding conditions in restraint of alienation merely to a few designated persons. According to these decisions the restraint may be extended to certain designated races, without rendering the condition void. * * * Other cases, however, hold all conditions in restraint of alienation to a large class such as one comprising a whole race (for example, conditions against alienation to Chinese, negroes, etc.) void as contrary to public policy, though they be limited in time." In Professor John Chapman Gray's learned treatise on Restraints on the Alienation of Property, (2nd Ed.), the author says in section 41: "The authorities it will be seen are in hopeless conflict. The rule which naturally suggests itself is that a condition is good if it allows of alienation to all the world with the exception of selected individuals or classes; but is bad if it allows of alienation only to selected individuals or classes. * * * Perhaps this rule might be difficult of application, or easily evaded." The impracticability of such distinction is apparent, as the condemnation imposed by his second proposition can be avoided and the approval of his first invoked by making alienation available to all the world with the exception of designated classes though the latter may include all of humanity except a small number intended to be favored. Very properly did the author note in the paragraph quoted the *133
difficulties attending the proposed rule. That distinguished author also makes the classification of conditions, conditional limitations and mere restraints on alienation. As summarized in section 270, Graves Notes on Real Property: "It will be observed that 'condition' refers to a case where on breach of the restraint the land is forfeited to the grantor or his heirs on entry, while 'conditional limitation' refers to a case where on breach of the restraint the land is to pass from the first grantee over to a second. And both of these cases of forfeiture for alienation (by way of cesser or limitation over) are to be distinguished from a mere restraint on alienation * * *, where the intent of the grantor is, not that the grantee should lose the land on alienation, but that it should remain the grantee's (any alienation, voluntary or involuntary, being merely nugatory), in spite of his own wishes or the claims of his creditors." In some of the cases the absence of a provision of forfeiture to the grantor or of a limitation over to third parties in event of breach of the condition has been taken by the courts as a basis for holding such attempted restraints to be entirely nugatory. Outstanding among such cases isFowkes v. Wagoner, (Tenn.)
"Conditions in conveyances which have the effect of forfeiting the title vested in the grantee are looked upon with disfavor by the courts, and unless the language used clearly imports the intention of the parties that the title should revest *134 upon non-compliance with the condition, the deed will not be held to be a deed upon condition subsequent. Ordinarily grants upon such conditions contain a provision in them that upon non-compliance with the conditions specified the title shall revert to the grantor. However, it is not necessary that the deed shall contain such language if it is clear from the language used by the parties in the deed as a whole that it was their intention and purpose that the title should revert to the grantor upon a failure to use the land for a particular purpose, or upon the failure to perform a specified condition. However, in order that the language in a deed may be given the effect of a condition subsequent it must clearly appear that the parties thereto intended that, in case of the grantee's failure to use the land for a particular purpose, or to do a particular thing, he should forfeit his interest therein. Language used in a deed declaratory of the purpose of the grantee will not ordinarily have the effect of creating a condition subsequent, and of forfeiting the interest which may be granted to him in the land by a failure to appropriate it to the purpose so declared. See Keatley v. County Court,
70 W. Va. 267 ; Carper v. Cook,39 W. Va. 346 ."
"A condition subsequent must be created by express terms or clear implication." Sands v. Holbert,
Among the cases holding that partial restraints on alienation are valid, we find Cowell v. Spring Co.,
In Corrigan v. Buckley, (D.C.) 299 F. 899, it was held that property owners could enter into a covenant running with the land binding themselves, their heirs and assigns, during a period of twenty-one years, not to permit land to be sold or leased to, or occupied by negroes. A year later the same court in Torrey et al. v. Wolfe et al., (D.C.)
In the Kentucky case of Lawson v. Lightfoot, (Ky.)
In the Virginia case of Camp v. Cleary,
So much for the cases holding or purporting to hold that partial restraints on alienation to classes are valid. We have attempted to cover the outstanding cases sustaining this contention reported throughout the United States.
Turning now to the cases holding such partial restraints on alienation invalid, we find California thoroughly wedded to the doctrine. In the carefully considered case of Title GuaranteeCo. v. Garrot, (Cal.)
Michigan is in line with California decisions. Starting withMandlebaum v. McDonell,
In De Peyster v. Michael,
In Winsor v. Mills, (Mass.)
In Kaufman v. Burgert, (Pa.)
In a carefully considered and lengthy opinion, the Rhode Island Court in Manierre v. Welling,
Minnesota has held directly on the question of partial restraint of alienation. In Morse v. Blood et al., 71 N.W. 682, a testator devised and bequeathed his real and personal property to his wife on condition that in no case should she give or bequeath one cent of said estate to any member of his family or any relation of her own. It was held that this was against public policy, and void, as being in restraint of alienation. "The only question argued by counsel is whether or not the said condition in the will is void, for being in restraint of alienation. It is evident that the title devised to plaintiff is one in fee simple. There is a conflict of authority as to when a condition against alienation to particular persons or *142 classes of persons attached to such a title is void. See Gray, Restr. Alien. Prop., sections 31-44. Some of the cases hold that the condition is good if it merely prohibits alienation to certain persons or classes of persons, and bad if it allows alienation only to certain persons or classes of persons. Other cases hold that the condition is good unless it takes away substantially the whole power of alienation. We doubt the correctness of the latter rule. * * * The experience of ages has shown that to permit fee-simple titles to be tied up by conditions which subject them to forfeiture has a strong tendency to prevent the improvement of the property or any proper use being made of it, and to prevent the development of the country. Conditions restraining alienation are, for this and other reasons, odious to the law, and against public policy."
In the Maryland case of Brown et al. v. Hobbs,
In Sanford et al. v. Sanford et al., (S.C.)
Delaware has ruled expressly on the point in Barnard's Lessee v. Bailey and Kettlewood, 2 Harrington's reports 56. A man devised to his wife in fee with the provision that his widow should not devise to his blood kin, or any of her blood kin. The court considered in this fashion: "The estate was not to be willed by the wife to either the testator's blood kin, or to her own, except to Samuel Walter. Now, if she is adjudged to take a fee by the will, how can this instruction be carried out? If she has a fee, she may devise it to whom *143 she pleases, to his blood kin or her's. The restriction is void."
The latest expression from Virginia on the question involved is found in Dunlop et al. v. Dunlop's Ex'rs. et al., 132 S.E. 351. Here was a devise to a son of an absolute estate in both real estate and tangible personal property and good will of a business. A condition followed that he should receive only one-fourth of the proceeds of the sale of such business if he sold it as an entirety. This condition was held to be a restraint on the inherent right of alienation and repugnant to the gift, hence void. The court in a well considered opinion fails to mention Camp v. Cleary, supra, but cites other decisions hereinbefore mentioned. We quote from the Dunlop
case: "It is unnecessary to go into at length the well-known doctrine that neither a testator in a will nor a grantor in a deed can give a fee-simple estate in either real or personal property and endeavor to impose upon the donee any condition incompatible with the usual and necessary incidents accompanying a fee-simple estate. Among such incidents are the complete right of alienation, without let or hindrance, and the liability of the property for the debts of the donee. * * * It is manifest that David Dunlop, Jr., would be greatly restrained in his right of alienation if, in the event he undertook to make a sale of the property, he would forfeit a large amount of the purchase money. While this is not a complete denial of the right of alienation, it is clearly a restraint upon that right, which does not come within any of the exceptions named by Mr. Minor, in his book on 'real property,' referred to above, or in the other authorities. It is a restraint through the requirement of the forfeiture of a part of the purchase money in case of a sale. This is illegal, and constitutes a condition repugnant to the absolute estate just given, and therefore the condition embracing that restraint is void. In argument, I have been referred to two cases very similar to the case at bar, from which quotations at length have been made by counsel. Without quoting from them, they are manifestly applicable to this case. I refer to De Peyster v. Michael,
Multiplication of authorities would serve no useful purpose. From a careful examination of the cases throughout the United States we are impressed with the lack of judicial utterance on the exact point before us, though many cases are found which recognize the basic principle here involved. From the following jurisdictions we cite cases which have a bearing upon the issue, and in doing so we note that a surprisingly large proportion cite Mandlebaum v. McDonell, supra, as authority. Whether these same courts will follow Porter v. Barrett, supra, as the logical extention of the Mandlebaum case when the time comes is, of course, dehors this opinion. Hill v.Gay, (Ala.)
Of course a distinction must be made between instances where a grantor makes an exception or reservation or attaches a condition within the power of his dominion as owner, — that is, where he does not part with his full dominion over the property but retains some measure of control, and those instances where he does part with his full dominion and then attempts to place a restriction on his grantee's right of alienation. McClure v. Cook,
Nor must there be any confusion between the principles applicable to the case now before us and the doctrine of spendthrift trusts. It must be kept in mind that spendthrift trusts are operative as a general rule on equitable life estates, not on fee simple estates, legal or equitable, nor even upon legal life estates. McCreery v. Johnson,
While the question of restraint on alienation of a fee simple estate to a large class or race of people has never been passed upon by this Court, an examination of our cases discloses many judicial expressions recognizing the principle that the jusdisponendi is an essential element of fee simple ownership. In the case of McClure v. Cook, supra, the first point of the syllabus reads: "The general rule is, that the power to sell is an inseparable incident of the ownership of property, which makes it liable to the owner's debts." In Riddle v. Town ofCharles Town,
In the case of Cobb v. Moore,
In Cohen v. Securities Co.,
As already indicated these several cases heretofore decided by this Court are here cited and quoted from not on the theory that they constitute direct precedent for a decision in this case. They do not. But because the pronouncements therein invariably emphasize the disfavor with which restrictions on property have been regarded in this jurisdiction.
The law journals carry frequent articles on the subject of restrictions on alienation. We call attention to the following one, not only because of the lucidity of the discussion, but because of the eminence of the author. Professor Joseph Warren, of Harvard Law School in the Harvard Law Review, Vol. XXXIV, in a very illuminating discussion of the subject, at page 653, says: "Happy is the jurisdiction whose court, uncontrolled by prior decisions, or under the protection of a code provision, may declare all such restraints on alienation invalid."
Whether a restriction on alienation operating against only a person or a few persons, for a limited time, is valid, is not the specific question before the Court, and we do not undertake a decision thereof. But on principle and reason, sustained *147 by what we deem the better considered cases, and, we believe, by the weight of authority, we hold that a restriction on alienation to an entire race of people, when appended to a fee simple estate is void as wholly incompatible with complete ownership. A fee simple is defined as "the largest possible estate which a man can have, being an absolute estate. It is where lands are given to a man and to his heirs absolutely, without any end or limitation put to the estate." Bouvier's Law Dictionary. The right to sell is a badge of ownership. If a person, sui juris, cannot sell a thing when it is free from debt, his dominion is impaired; it is not absolute. If large numbers of possible buyers are cut off by the hand of the grantor, then, to that extent, the grantee ceases to be in control of his own property. A fee simple title to real estate no longer would import complete dominion in the owner if because of a restriction imposed by his grantor the market afforded by a whole race of the human family is closed. A distinction that would treat with more seriousness an absolute restriction against alienation for however short a period (the same being generally held invalid), with more seriousness than a restriction against alienation to a large race of people for half a century seems fanciful rather than real. It does not follow, because of contractual restrictions on the use of property in a residential community precluding a man from using a lot for the operation of a slaughter house or a glue factory or other inhibited purpose, that he may not own the lot. Likewise, though there may be contractual restrictions intended to preserve separation of races, whereby a member of a designated race may not occupy a designated property for residential purposes, it does not follow that he may not become the owner thereof. These matters may generally be regulated in the use, but not in the ownership where a fee simple estate is granted, unless continuance is given to a serious trespass on basic conceptions of property rights. The principles determinative of the rights attending complete ownership are entirely different from those which may define or limit the use.
We reverse the decree of the trial court and dismiss the bill.
Reversed and rendered. *148