Orange And Rockland Utilities, Inc. v. Philwold Estates, Inc.

418 N.E. 2d 1310 (1981)

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Nature of the Case

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Facts

East bank land was sold to Crane under a deed that restricted its use by Crane, his heirs, executors, and assigns solely for the erection of a Hydroelectric and generating plant and other proper fixtures suitable for the use of the Neversink River and Bushkill Creek. The seller also retained exclusive hunting and fishing rights. Crane conveyed the restricted property to the Rockland Light and Power Company now known as Organ and Rockland Utilities Company (P). The west bank land was eventually owned by Philwood Estates, Inc. The seller died in 1934. P sued seeking a declaration that the restrictive covenant was personal and thus not enforceable by the successors or that in the alternative, the covenant was extinguished. The statute of limitations was first used to defeat the cause of action, but the Appeals court ruled that P's title to property was unchallenged and the only thing being litigated was the restrictive covenant. The court held that the covenant ran with the land and was therefore enforceable by D but that it should be extinguished as it serves no purpose and makes the land valueless. D was given no damages but could seek damages in the future if any so occurred to his land if P utilized his in such a manner as to cause damages to D's land. This appeal resulted.