Court Opinion

ID: 9789965
Source: CourtListenerOpinion
Date Created: 2023-08-31 01:44:38.142942+00
Date Added: 2024-06-11T07:37:25.424521
License: Public Domain

STRUCKMEYER, Chief Justice
(dissenting).
So that my differences with the majority may be clarified, some of the material facts will be emphasized. Lot 10 is a tract of land, rectangular in shape, approximately 320 ft. x 600 ft., acquired by the Blacks in December of 1944. The first transfer from the Blacks was the north one half of lot 10 to appellants Clarence J. Smith and Thelma B. Smith. The deed from the Blacks to the Smiths did not in any manner pretend to bind this parcel of land (parcel 1) to the 1944 restrictions. Since the Declaration of the 1944 Restrictions does not purport to cover lot 10, it cannot be seriously urged that the north one half thereof is, or ever was subject thereto; but this does not mean that the rights of the owners of the three parcels comprising the south one half of lot 10 need he categorically classified in the same manner.
Parcel 2, the east half of the south half of lot 10, was transferred to the Beers, husband and wife, by deed, with the customary unqualified granting clause. The granting clause was immediately followed by this paragraph:
"Subject To: Regulations and restrictions imposed by any planning authority ; Provisions of that certain Water Right Application recorded in Book 10 of Water Right Applications, at page 93; Easement to the Mountain States Telephone and Telegraph Company, as set forth in instrument of rec*414ord in Book 64 of Miscellaneous Records, at page 216; Right of way and easement to The Mountain States Telephone and Telegraph Company, as set forth in instrument of Record in Book 36 of Miscellaneous Records at page 88; Restrictions as set forth in instrument of record, recorded October 28, 1944, in Book 66 of Miscellaneous Records, at page 570; and as contained in Warranty Deed, recorded March 7, 1913, in Book 103 of Deeds, at page 111; Records of Maricopa County, Arizona.” (Emphasis supplied.)
A somewhat similar clause is contained in the deed to Parcel 3.
It is apparent that if Parcels 2 and 3 are not subject to the restrictions of 1944 as set forth in Book 66 of Miscellaneous Records at page 570, no effect will be given to an entire clause in both deeds, and this court, by such deletion, has without so saying rewritten the instruments. This, of course, is contrary to the legal principle that all parts of a deed must be given legal effect, if possible. New rules are better settled. For some of the more recent cases see: Stratford v. Lattimer, 255 Ala. 201, 50 So.2d 420; Bradley Lumber Co. of Arkansas v. Burbridge, 213 Ark. 165, 210 S.W.2d 284; Kraemer v. Kraemer, 167 Cal.App.2d 291, 334 P.2d 675; Percifield v. Rosa, 122 Colo. 167, 220 P.2d 546; Dolley v. Powers, 404 Ill. 510, 89 N.E.2d 412; Cockrell v. Texas Gulf Sulphur Co., 157 Tex. 10, 299 S.W.2d 672; Conner v. Hendrix, 194 Va. 17, 72 S.E.2d 259. For example, in Dolley v. Powers, supra, 89 N.E.2d at page 414, the governing principle is stated:
“Since it cannot he presumed that the parties used words or terms in a deed without intending that some meaning or effect be given them, a construction will be adopted, if legally permissible, giving effect to the whole instrument and to each word and term used, rejecting none as meaningless, repugnant or surplusage.”
In Conner v. Hendrix, supra, 72 S.E.2d at page 265, this language was used:
“ Tt is a well-settled rule of construction that inasmuch as the parties must have intended all the provisions and terms of a deed to have some meaning and be given some import, from the fact that the terms and provisions were actually inserted in the deed, a deed will be so interpreted as to make it operative and effective in all its provisions, if its terms are susceptible of such interpretation. Every word, if possible, is to have effect, for, it has been said, the deed, as the witness to the contract between the parties, should speak the truth, the whole truth, and nothing but the truth.”
The majority give lip service to this principle by stating that “When property is conveyed by warranty deeds, such as the Black *415deeds here, it is in the interest of the grantors that the conveyance he made subject to every restriction or encumbrance which not only does apply to such property but also may apply.” This argument is manifestly specious when the Declaration of Restrictions is examined.
“Declaration of Restrictions on Portions of Orangewood Subdivision
“Whereas, the undersigned, Arizona Title Guarantee & Trust Company, of Phoenix, Arizona, is the owner as Trustee, of that certain tract or parcel of land situate in the County of Maricopa, State of Arizona, and more particularly described as follows, to-wit:
“Lot 11, 12, 13, 14, 15, 16 and 17 and the Wj4 of lot 5 and 6 in Block 2, Orangewood Subdivision, plat of which is of record in Book 2 of Maps, page 50, Maricopa County Recorder’s Office; and
“Wheras, the undersigned is replating [sic] and resubdividing said property into smaller tracts or parcels of land to be sold and used for residence purposes with the intent of making the same a high class district comprising only substantial homes;
“Now, Therefore, the undersigned does hereby declare that the following express covenants and restrictions as to the use and enjoyment by any subsequent grantee of any lot or parcel of land in said above described tract, as resubdivided, shall be covenants and restrictions running with said lot or lots or parcels of land situated in said tract for the mutual benefit of the undersigned and all subsequent grantees of any portion thereof, and which said covenants and restrictions are as follows, to-wit: * *
The restrictions do not, and obviously cannot, apply to lot 10, simply because the lots to which they do apply are specifically enumerated. It is inconceivable that intelligent men could believe that the restrictions were applicable to any parcel of land anywhere other than to those named in the Declaration of Restrictions.
Other facts nullify the majority’s conclusion. The Arizona Title Guarantee & Trust Company, as the grantor of lot 10, signed and filed the Declaration of Restrictions 34 days before transferring lot 10 to the Blacks. Its deed expressly subjected lot 10 to certain easements, rights of way, and the restrictive convenants to be found in Book 103 of Deeds, page 111, but made no reference whatsoever to the Declaration of Restrictions above stated recorded in Book 66 of Miscellaneous Instruments. In the light of the fact that lot 10 was made subject to some restrictive covenants but was excluded from those in question, is it possible to believe that there could be any misconception by Black as to the extent of *416the restrictions embracing the property at the time he accepted the deed?
Furthermore, the interpretation accorded by the majority does not conform with the accepted legal construction of the words “subject to” in deeds. It has been repeatedly held that the words “subject to” in deeds are words of qualification and a limitation on the grant. Harley v. Magnolia Petroleum Co., 378 Ill. 19, 37 N.E.2d 760, 137 A.L.R. 900; Kelley v. Haas, Ky., 262 S.W.2d 687; Ozehoski v. Scranton Spring Brook Water Service Co., 157 Pa.Super. 437, 43 A.2d 601; Cockrell v. Texas Gulf Sulphur Co., supra. For example, in Harley v. Magnolia Petroleum Co., supra, 37 N.E.2d at page 766, the Supreme Court of Illinois dismissed a contention that the property in question was not subject to the provisions of a certain lease with this statement:
“These grantees knew that they were taking their deeds ‘subject to’ the provisions of the lease as recited in the deeds which were prepared and presented by them. The words ‘subject to’ are words of qualification of the estate granted. Consolidated Coal Co. v. Peers, 166 Ill. 361, 46 N.E. 1105, 38 L.R.A. 624; Leonard v. Caruthers, Tex.Civ.App., 236 S.W. 189; Percival v. Williams, 82 Vt. 531, 74 A. 321.”
The majority state that restrictions in a “subject to” clause will not, without more, make such restrictions applicable to the deeded property if, as a matter of fact, they are otherwise inapplicable. I do not quarrel with the statement. It simply has no application here, for the restrictions are plainly applicable to Parcels 2 and 3. This entire area for many blocks surrounding lot 10 is a residential area of the highest type. Each and every one of these restrictions, providing as they do, that lots shall be used for single dwelling houses costing not less than $7,500, to be of one story in height, comprising not less than 1,500 sq. ft., that the dwellings and outbuildings shall not be constructed nearer than 60 feet from the property line and 10 feet from the side line, that lots may not be subdivided into less than 30,000 sq. ft., etc., is in every respect applicable to the parcels in the south half of lot 10.
In this state, as everywhere, it has become a common practice for a land developer to file or record plats of subdivisions. The deeds to the numerous grantees in the subdivision do not repeat all the restrictions, but simply state that the land is “subject to” the restrictions in the plat. The majority opinion in this repect runs against the common commercial practice and against the well-recognized rule of law that restrictions may be imposed by reference, using the phrase “subject to”. Davis v. Huguenor, 408 Ill. 468, 97 N.E.2d 295, 297, 23 A.L.R.2d 931; Wischmeyer v. Finch, 231 Ind. 282, 107 N.E.2d 661. This *417court has, without discussion, upheld the validity of restrictions which were incorporated by reference. Whitaker v. Holmes, 74 Ariz. 30, 243 P.2d 462. If restrictions are both applicable and inapplicable, those suitable to the property conveyed will be enforced. Godley v. Weisman, 133 Minn. 1, 157 N.W. 711, 158 N.W. 333, L.R.A. 1917A, 333.
For the foregoing reason, the judgment of the lower court should be reversed, but, if as a matter of law it is possible to say that the meaning of the “subject to” clause is ambiguous, then the summary judgment is patently erroneous, since then it would be the duty of the trial court to determine the intention of the parties to the deeds as a question of fact from the circumstances surrounding the sale of the properties.
A further problem which, while not raised in the briefs, is implied from the long quotation from Werner v. Graham, 181 Cal. 174, 183 P. 945, is whether the restrictive covenants are such as run with the land. As to this, there can be no room for argument. The Declaration of Restrictions in Book 66 of Miscellaneous Records at page 570 expressly provides by paragraph 10 “That the foregoing covenants and restrictions shall run with the land for a period of twenty-five (25) years * * Of a similar covenant, the Court of Appeals of New York said in Neponsit Property Owners’ Ass’n v. Emigrant Industrial Savings Bank, 278 N.Y. 248, 15 N.E.2d 793, 795, 118 A.L.R. 973:
“There can be no doubt that Neponsit Realty Company [grantor] intended that the covenant should run with the land and should be enforceable by a property owners association against every owner of property in the residential tract which the realty company was then developing. The language of the covenant admits of no other construction.”
Here, the language of paragraph 10 of the Declaration of Restrictions admits of no other construction but that the covenants were intended to run with the land.
No contention has been made that there was no privity of estate or that the restrictive covenants do not touch and concern the land. The question then becomes whether, under the circumstances of this case, these restrictions are enforceable by the P.almers, the present owners of Parcel 3 as against the present owners of Parcels 2 and 4. Here again, the law is well developed and settled.
“A very common purpose of restrictions as to the use of property conveyed is to benefit land retained by the grantor. Where the owner sells a part of his premises, and imposes a restriction on the purchaser, by which the lands retained will be benefited, the transaction is sufficient to show an *418intention that the restriction is for the benefit of the lands retained, and the grantor or his subsequent grantee can enforce it.” (Emphasis supplied.) 21 A.L.R. 1288. And see the cases collated and analyzed therein.
The majority in the instant case state that “It is perfectly clear, therefore, that lot 10 is not part of a common neighborhood plan or general building scheme * * This, of course, is true. Lot 10 never was a part of the common neighborhood plan, but this does not mean that the rights of the Palmers who are the owners of Parcel 3 as against the owners of the remainder of the south one half of lot 10 can be disregarded. Anderson v. Henslee, 226 Ky. 465, 11 S.W.2d 154, 157, is directly on point.
“ * * * restrictions have been upheld when inserted in deeds under a general plan of a subdivision, and no reason appears why the same rule should not apply to a two-lot subdivision. Hartt v. Rueter, 223 Mass. 207, 111 N.E. 1045; Lacentra v. Valeri, 244 Mass. 404, 138 N.E. 388; Hart v. Little, 103 Misc.Rep. 620, 171 N.Y.S. 6; Bouvier v. Segardi, 112 Misc.Rep. 689, 183 N.Y.S. 814; Clark v. Martin, 49 Pa. 289.
“In the latter case the court said:
“ ‘It is not because a plan is deranged that the court interferes, but because rights are invaded, or about to be; and this fact may exist in a plan of two lots, as well as in one of 200. The plan often furnishes the proof of the terms on which sales were made; but the fact of the alleged terms is as effective when proved by a single deed as when proved by a plan.’ ”
There is no reason in law or in equity why, even though the north half of lot 10 was sold without restrictions, the south half could not be conformed to the general scheme by which this entire neighborhood was developed.
While the cenveyance of Parcel 2 by the Beers to the appellee did not contain the recital that the land conveyed was subject to the restrictions of 1944, nevertheless, appellee is charged with constructive notice thereof, since they appear in its chain of recorded title. Gamble v. Fierman, 82 Cal.App. 180, 255 P. 269; Dolan v. Brown, 338 Ill. 412, 170 N.E. 425; Allen v. Massachusetts Bonding & Ins. Co., 248 Mass. 378, 143 N.E. 499, 33 A.L.R. 669; Hayes v. Gibbs, 110 Utah 54, 169 P.2d 781, 168 A.L.R. 513.
It is apparent that by imposing the 1944 restrictions on Parcels 2 and 3, grantors Black conformed those parcels to the general plan of development of the adjacent property in block 2, Orangewood Subdivi*419sion. The only remaining problem, is what effect does this have on Parcel 4 ? It is an equitable rule that where a plan of development exists and the grantee takes with notice of the restrictions, either actual or constructive, they may be enforced, even though, through inadvertence or otherwise, they have not been imposed on one of the parcels. Grange v. Korff, 248 Iowa 118, 79 N.W.2d 743; Turner v. Brocato, 206 Md. 336, 111 A.2d 855; Sanborn v. McLean, 233 Mich. 227, 206 N.W. 496, 60 A.L.R. 1212. The principle here is that when an owner of land contracts with the purchasers of successive parcels in respect to the manner of occupation and improvement of such parcels, the remainder of his lands are affected with an equity which requires that they also be occupied and improved in conformity with the plan. This equity is binding upon a purchaser of the remaining parcel who has notice of the prior covenants, even though his legal title is unrestricted. Grange v. Korff, supra.
It is my conclusion that the judgment of the court below should be reversed with directions to set aside the summary judgment heretofore entered against appellants Rodman K. Palmer and Mary G. Palmer, his wife, and with the further direction to enter a summary judgment in their favor, declaring the 1944 restrictions valid and enforceable by them as against the owners of Parcels 2 and 4.
JOHNSON, J., concurs in this dissent.