Eagle Enterprises, Inc. v. Gross
New York Court of Appeals
349 N.E.2d 816 (1976)
- Written by Angela Patrick, JD
Facts
In 1951, Orchard Hill Realties, Inc., a developer, sold property in the Orchard Hill subdivision to William and Pauline Baum. The Baums’ deed contained a covenant requiring them to purchase water from Orchard Hill Realties seasonally, from May through October of each year, for $35 a year. The water came from a well located on other property owned by Orchard Hill Realties. The covenant stated it would “run with the land” and bind the parties’ successors. The property changed hands multiple times, with Bob Gross (defendant) eventually acquiring it. The deed to Gross did not mention the covenant. Gross dug a well on the property. By then, Eagle Enterprises (Eagle) (plaintiff) was the successor in interest to Orchard Hill Realties. Gross refused to purchase water from Eagle, getting all he needed from his well. Eagle sued Gross to collect the water fee. Eagle argued that the covenant bound Gross, as the property’s owner, to purchase water from Eagle. The trial court ruled for Eagle. The appellate division reversed, ruling that the covenant was not enforceable against Gross. Eagle appealed to the New York Court of Appeals.
Rule of Law
Issue
Holding and Reasoning (Gabrielli, J.)
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