Monday, November 25, 2013

De Peyster v. Michael case brief

De Peyster v. Michael case brief summary
6 N.Y. 467 (1852)


CASE SYNOPSIS
Plaintiff fee owner appealed a decision from the trial court (New York) that granted defendant party to be ejected's motion for a nonsuit, on the ground, among others, that the quarter sale covenant and condition were void as a fine upon alienation, as repugnant to the grant or lease in fee, and as against public policy.

CASE FACTS
A lessor leased in fee to a lessee. The fee owner was the assignee of the lessor and the party to be ejected was the assignee of the lessee. The lessor saved and reserved one equal fourth part of all the moneys owing or that might arise relative to the sale or in connection with bushels of wheat or any transactions relating thereto by the lessee, his heirs, executors, administrators and assigns, and when, and as often, and every time the same shall be sold, rented, set over, assigned or otherwise disposed of. The lessee covenanted for himself that whenever he or they should be inclined to sell the premises, or any part, he or they should make the first offer to the fee owner in writing. The fee owner gave evidence to show that a portion of the premises contained in the lease had been sold or assigned to the party to be ejected without paying to the assignee of the lessor a quarter of the sale money, in accordance with the covenant of the lessee.

DISCUSSION
The court stated that the lease was a fee simple estate, subject only to the payment of the rents reserved, and to the performance of the lawful conditions contained therein.

CONCLUSION
The court affirmed the judgment of the trial court that the covenant and condition were void.

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