Neponsit Property Owner's Association, Inc. v. Emigrant Industrial Savings Bank

278 N.Y. 248, 15 N.E.2d 793 (1938)

Facts

Neponsit Realty Company, the assignor of Neponsit Property Owner's Association (P), conveyed land to Deyer in 1917. The company, as owner of a tract of land in 1911 filed a plan for the land, which was developed strictly as a residential community. All the lots and the conveyances to the owners described the lots by reference to the filed map. The deed that was given to Deyer provided that the property was subject to an annual charge due on the first of May each year, but not to exceed $4 per year, payable to P and that failure to pay this assessment to P would result in a lien upon the land until paid. The covenants were to run with the land, and the money was to be used for maintenance of roads, paths, parks, beach, sewers, and other such public purposes. Every deed in the chain of title contained the covenant, and the property was made subject to the covenants and restrictions contained in the original deed. Emigrant Industrial Savings Bank (D) bought Deyer’s land at a judicial sale. The deed D got from the referee conveyed the property subject to the original covenant. P wanted to foreclose a lien upon the land now owned by D. P brought action to recover this lien and was awarded a judgment. D appealed the denial of a motion for a judgment on the pleadings.