Capitol Federal Savings & Loan Association v. Smith

316 P.2d 252 (1957)

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Capitol Federal Savings & Loan Association v. Smith

Colorado Supreme Court
316 P.2d 252 (1957)

RL

Facts

The Smiths (plaintiffs) owned and occupied property to which Capital Federal Savings & Loan (defendant) was a predecessor in title. The Smiths’ property was subject to a restrictive covenant that purported to create a right of reversion to the grantors in the event that any signatory to the covenant sold or leased the property to persons of color. The Smiths, as persons of color, brought suit to quiet title and seek declaratory judgment annulling any claim or interest arising from the restrictive covenant. The trial court concluded that the restrictive covenant was void because enforcement would violate the Fourteenth Amendment. The trial court quieted title and declared the Smiths the owners of the property in fee simple. Capitol Federal appealed.

Rule of Law

Issue

Holding and Reasoning (Knauss, J.)

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