By the indenture in question, Isaac D. Yerplanck reserved the*right to receive, and the lessees promised to pay one-sixth part of the purchase money, whenever the premises should be sold by the lessees, their heirs or assigns. He also reserved a pre-emption right to the property, at a deduction of one-sixth of its price or value. The plaintiff claimed at the trial, to recover, on the ground that the property had been twice sold without paying over the 11 sixth sale” reserved ; and that in both instances the sales had been made without having first offered to sell the farm to the lessor on the terms prescribed in the lease.. If these were valid conditions, the forfeiture was incurred and the plaintiffs had a right to re-enter.
I think the only question here presented is, whether the sixth sale reservation was valid. The forfeiture of one-sixth of the purchase money was to be incurred whether the sale was made to the lessor or to a third person. The lessees could not therefore comply with the conditions of the lease, by first offering to sell for a reasonable price to the lessor; they were required to go further, and to submit to a sale to him for five-sixths of the value. If, therefore, the reservation of the sixth sale was in
The question is an important one. Reservations of this description, generally known as “ quarter sales,” “ sixth sales,” and “ tenth sales,”- have been frequently made in perpetual leases in fee. The legal title to hundreds of farms now depends upon their validity; and though it may be true that forfeitures for a breach of such conditions have been rarely enforced, the question involved is none the less important in principle. It is perhaps because the claim to the quarter sale has been generally compromised for a small sum, much less than the cost of testing its validity, that this question has been so rarely, if ever, brought before the courts of this state for examination. It is claimed, on the part of the plaintiffs, that this question has been decided in the late supreme court of this state. If so, we are bound by such authority, and shall not have occasion to discuss the principle. It is important, therefore, that we first ascertain whether it is an open question.
The case principally relied on by the plaintiffs, is Jackson v. Schutz, (18 John. 174.) That, like this, was an action of ejectment to recover possession for an alledged forfeiture of the conditions of a perpetual lease. In addition to the reservation of an annual rent, it was provided that in case the party of the second part was minded to sell the farm, he should first offer the pre-emption to the party of the first part; and that the party of the second part should not sell without leave first obtained from the party of the first part,-under his hand and seal, and on every such sale so obtained, was to pay to the latter a tenth part of the money for which said farm should be sold. The lessee assigned the lease and premises without any license from the lessors, and without offering the pre-emption and refusal to them, or paying them the one-tenth of the price of such assignment. A verdict was taken for the plaintiff by consent, subject to the opinion of the supreme court, which gave judgment for the plaintiff. The judges, however, assigned different reasons for their respective opinions. Mr. Justice Platt placed his decision upqn the ground that all the violated conditions were lawful,
In Jackson ex dem. Schuyler v. Corlis, (7 John. 531,) a lease for 21 years contained a quarter sale reservation on which ejectment was brought, the premises having been sold under an execution issued on a judgment confessed by the lessee. The court held that the covenant applied only to voluntary sales; and it not appearing that the judgment was fraudulently confessed, judgment was given for the defendant. Jackson ex dem. Stevens v. Silvernail, (15 John. 277,) was ejectment upon a lease for lives, with a covenant not to sell without permission of the lessor, and a clause of forfeiture for non-performance of covenants; and it was decided that a lease of part of the pre.mises for 20 years was not a breach of the covenant, and that nothing short of an assignment of the whole estate would work a forfeiture. It was also held that a sale of the whole premises under a judgment and execution would not work a forfeiture, there being no fraud or collusion on the part of the lessee. Jackson ex dem Livingston v. Groot, (7 Cowen, 285,) was also ejectment upon a lease for lives, and the only question was whether the premises were forfeited by violating the covenant of tenth sale. The court
I have thus reviewed all the cases in the reports of this state, where suits have been brought to enforce a forfeiture of the land for non-payment of quarter, sixth and tenth sales. In every instance, the suit was brought upon leases jfor lives ox for years, with the single exception of Jackson v. Schutz, where the question was on a lease in fee. In Livingston v. Stickles, the chancellor said, “ these covenants and conditions in restraint of the alienation of leasehold property-have been sustained by the courts, while they have been considered absolutely void in conveyances in fee.” It is evident this language was used by the chancellor with reference to the lease for lives then before him, and that he did not intend to include leases in fee in the general term “ leasehold property.”
It is now well settled, and was conceded on the argument, that reservations in the nature of fines upon alienation are valid in leases for lives and for years; but even in such leases, our courts have always held, as appears by the cases above cited, that nothing short of a violation of the covenant, on the most literal and rigid interpretation, would subject to a forfeiture. Nor have the English courts been less solicitous to protect against such injustice. (See Crusoe v. Bugby, 3 Wils. 234; 2 Wm. Bl. 776; Doe v. Hogg, 4 Dowl. 6p Ryl. 226; Fox v. Swan, Styles, 482; Doe v. Bevan, 3 Maule & Sel. 353 ; Doe v. Carter, 8 Durn. & East, 57, 300; Doe v. Powell, 3 Barn. & Cres. 308; Doe v. Payne, 1 Stark. Rep. 86; Platt on Cov. 407, 414; Church v. Brown, 15 Ves. 265.)
It is first necessary to understand the precise legal character of the instrument in which the sixth sale was reserved. We speak of it ordinarily as a lease, and we call the parties to it lessor and lessee. This is proper, because a perpetual annual rent is reserved, with the right of re-entry for non-payment. But these words do not convey an adequate idea of it. It is a grant of an estate of inheritance, or a fee simple. The conveyance was to the party of the second part, his heirs and assigns forever. The words of perpetuity necessary, as the law stood at the date of the instrument, to convey an estate of inheritance, were thus used. “ Tenant in fee simple is he who hath lands or tenements to hold to him and his heirs forever.” (Lift Ten. 1.) It is not a fee simple absolute, but a fee simple conditional—the estate depending on conditions subsequent. Blackstone says, (2 Black. Com. 81,) “ If a man grant an estate in fee simple, reserving to himself and his heirs a certain rent; and that if such rent be not paid at the times limited, it shall be lawful for him and his heirs to re-enter and avoid the estate. In this case, the grantee and his heirs have an estate upon condition subequent, which is defeasible if the estate be not strictly performed.” And this definition is now substantially recognized by the revised statutes, (1 R. S. 717,) which provide that “ every estate of inheritance, notwithstanding the abolition of tenures, shall continue to be termed a fee simple or fee.” When not defeasible or conditional, it is termed a fee simple absolute.
The estate conveyed is also a freehold, that term applj-ing equally to an estate of inheritance and an estate for life. (4 Kent’s Com. 23. 2 Bl. Com. 8, n. 4.)
1. It is objected that the condition is repugnant to the grant of a leasehold estate in fee in the same instrument, and is therefore void. “ Conditions are void when they stipulate for what is repugnant to the language of the grant; as that a man who is a lessee to him and his assigns shall not assign; or, that
In the case under consideration the whole estate was granted in fee. None remained in the grantor. He retained no interest on. which a judgment would have been a lien. (Payn v. Beal, 4 Denio, 405.) This case overrules that of The People v. Haskins, (7 Wend. 463,) where a contrary doctrine was held. The same question had been discussed but not decided in the late court for the correction of errors, in Huntington v. Forkson, (6 Hill, 149.)
It is said that in this case the estate may be terminated by the re-entry of the grantor for non-payment of rent. But it is no estate in the grantor, that he may by possibility have the right to re-enter for breach of condition subsequent. “ If A. has only a possibility of reverter, as in the case of a qualified or conditional fee at common law, he has no reversion.” (4 Kent’s Com. 353. 2 Preston on Abstracts, 83.) To authorize him to impose a restraint upon alienation, he must have a right to the reversion of the estate by its limitation, which Littleton calls a condition in law. (Litt. § 380. 1 Just. 234. 4 Black. Com. 155.) In the latter case the estate reverts when the contingency happens, without any act done by the person in expectancy. In the former case the law permits the estate to endure beyond the time when such contingency happens, unless the grantor or his heirs or assigns take advantage of the breach of the condition and make either an entry or a claim in order to avoid the estate. (Litt. § 347. Black. Com. 125.) There is no difference in principle between a condition that the lessee in fee shall not convey, and a condition that, when he conveys, he shall pay
I do not think it necessary to inquire what was the common law of England on this subject previous to the passage of the statute of quia emptores, &c. in 1290,18 Ed. 1, ch. 1; or if the common law was modified by that act, whether that act was ever in force in this country. (1 R. L. 41. 18 John. 179.) The statute quia emptores was virtually re-enacted in this state in the first section of the act concerning tenures, passed 20th February, 1787, which enacts that “ it shall forever hereafter be lawful for every freeholder to give, sell or alien the lands or tenements whereof he or she is or at any time hereafter shall be seised in fee simple, or any part _ thereof, at his or her pleasure, so always that the purchaser shall hold the lands or tenements so given, sold or aliened of the chief lord, if there be any, df the same fee, by the same services and customs by which the person or persons making such gift, sale or alienation before held the same lands and tenements.” The common law exists here under the same statutory modification as in England.
I think, therefore, that the whole estate having been granted in fee, the restraint imposed upon alienation was repugnant to the grant, and is void, and the void condition being a condition subsequent, the estate stands divested of the condition. (1 Shep. Touch. 129. 3 Com. Dig. 97, Condition, D. 5 Co. Litt. 226 b, 223 a.)
2. It is also insisted by the defendant’s counsel that the sixth sale reservation was a fine for alienation, in contravention of the act abolishing fines for alienation, and was therefore void.
Fines for alienation were abolished in England in 1660, by 12 Chas. 2, ch. 24. The only exceptions made by that statute were of the king’s tenants in capite and of the tenure by copy
It is insisted that the sixth sale reservation is not a “ fine for alienation” within the language of the act of 1787; and that the statute was intended to apply only to such fines as are incident to feudal tenure, and not to a sum of money agreed to be paid by a purchaser on a subsequent sale. Shepherd says “ a fine was taken for an income or a sum of money paid at the entrance of a tenant into his land.” (Shep. Touch. 1.) A fine for alienation was orginally an attendant or consequence of tenure by knight service. The fine became due to the lord for every alienation, whenever the tenant had occasion to make over his land to another. (4 Black. Com. 55.)
If not technically a fine upon alienation, the sixth sale reservation is in the nature of a fine upon alienation. Such is the language generally used by our courts with reference to such a condition. If there were no feudal tenures nor their incidents here, then that part of the act of 1787, abolishing fines for alienation, has no practical application, unless it applies to a condition like this. When Shepherd says, “ if the condition be that if the feoffee do alien he shall pay a fine to the feoffor, the con dition is void,” (1 Shep. Touch. 129) he certainly uses the word as applicable to a sum of money agreed to be paid on alienation,
3. It remains to consider whether the condition is void on the ground that it is against public policy.
I do not deem it necessary to a decision of this cause to go into an examination of the feudal system, its origin, its history and its consequences upon the present tenure of land. It is enough to say, it was a system originating in a military age, and well adapted to its necessities ; but utterly unsuited, every vestige of it, to the institutions under which we live, and to the personal independence and equality of political rights enjoyed by our citizens. The tenant no longer looks to his lord for protection against lawless aggressions, nor does the lord depend upon the military services of his tenants. There are no longer courts baron, nor homage, nor fealty, nor knight service. The reasons why neither the lord nor the tenant could change their relations with each other without mutual consent, ceased, centuries ago, with the necessities which imposed them. The progress of man in intelligence, in knowledge, in the arts of peace and in political advancement, now calls for tenures in accordance with perfect political equality, and entire personal freedom; and if there be vestiges of feudal tenure still remaining here, they should be eradicated as speedily as is consistent with a strict regard to the rights of property of those concerned.
Quarter Sales* sixth sales, and tenth sales, and all fines for alienation* or sums required to be paid in the nature of fines upon alienation* have long been regarded as prejudicial to the public interests. Some of their evils are well stated in a report made to the legislature by Messrs. Spencer and Tan Ness in 1812. (Nee Assembly Journal of 1812, page 110.) It is the policy of the law that lands shall not be withdrawn from commerce ; but these conditions tie up estates by a species of per
Such conditions have the effect of preventing a change of occupation. They require the son to live upon and cultivate the same farm his father has tilled, though he may be unfitted for the employment, and may have been designed by nature for some other calling better adapted to his taste and capabilities. He is denied the opportunity to go abroad into the world to reap the rewards of his enterprise and industry, except at the sacrifice of a large share of the estate made valuable by the toil and industry of his fathers. In a land where the professions and trades are open to all, he is subjected to all the discouragements of caste. A freeman and a freeholder, he is not at liberty to dispose of his own property.
Such conditions depreciate the value of property, and discourage industry. It can hardly be supposed a purchaser from the tenant will pay the full value for a farm, when he knows he will be under the necessity of giving to a landlord one-sixth of what he shall receive, whenever he shall be disposed to sell it again. Nor will an owner consent to make permanent improvements or valuable erections, subject to such a loss on them by alienation. The improvement of the country is largely con
I think no person can be found the advocate, and few persons the apologists, of such a condition, at the present day; a condition so unconscionable, that the cases are exceedingly rare, in which the landlord has ever sought to enforce it, and so odious, that a distinguished writer in the American Review (2 Am. Rev. 593) says, “ after a new owner had come into possession, having paid the full value of the property, if he should have occasion to sell again for the like value, we should envy no man his conscience or his character, who, under this provision would take from him the full quarter part of his purchase.”
It is said that this condition formed a substantial part of the consideration for which the grant was made. If this were so, it would not affect the legal question. Where a physician covenants, in consideration of $1000 paid to him, never to practice medicine again in the state, the covenant is void, notwithstanding the consideration, as being in restraint of trade and against the policy of the law. (Nobles v. Bates, 7 Cowen, 307. 7 Mod. 230. 10 Id. 27, 85, 130. 2 Saund. 156 a, n. 1.) But though in law this condition is regarded as a part of the consideration for the grant, it was esteemed of but little value when the lease was executed. Upon this subject Messrs. Spencer and Van Ness say in their report above referred to, “ covenants and conditions, which coerce the tenant to pay a penalty for leave to change his residence are generally without consideration; for it can not be pretended that in settling the terms of the lease, landlord took a lower rent on the contingency that his tenant would change his mind and become disposed to part with his lease. It may also be remarked that the tenant, in entering into stipulations to pay a fine or a quarter sale on alienation, does so under circumstances which may induce him to believe he will never be disposed to alienate; but his circumstances change, and a variety of unforseen causes impel him to a change of residence. It can never be right to suffer a landlord who is not prejudiced by the alienation of his tenant to grasp a part of
It is within the legitimate scope of judicial inquiry to ascertain whether such reservations are against public policy; and I have therefore thought it proper to look somewhat into their nature and character. Upon this question it seems to me there is no good reason for a difference of opinion.
I need not here repeat the authorities bearing upon this question which I have referred to under the first point. Upon both principle and authority, such a condition is condemned, as against the policy of the law. I think there should be a new trial, costs to abide the event.
New trial granted.