Union Stockyards Co. v. Nashville Packing Co.

Citations

• 140 F. 701
• 72 C.C.A. 195
• 1905 U.S. App. LEXIS 3953

Syllabus

<p>1. Deeds — Construction—Covenant oe Condition Subsequent.</p> <p>It is the rule that a court does not favor a construction of a deed which will impose a condition subsequent leading to a possible forfeiture of the estate, but will be inclined to adopt, if it fairly can, a construction which will save the estate and remit the party in whose favor the obligation is created to an action for his damages; and the fact that the deed uses the language that the estate is granted on condition is not conclusive, and will not be controlling if upon other considerations it appears that such was not the intention of the parties.</p> <p>[Ed. Note. — For cases in point, see voi. 16, Cent. Dig. Deeds, § 488.]</p> <p>2. Same.</p> <p>Plaintiff, a stockyards company, conveyed certain land to defendant’s grantor pursuant to a contract, by which he agreed to build and maintain thereon a packing house of a specified capacity, and that the buying, weighing, and handling of all stock purchased in the vicinity should be done at plaintiff’s yards. The contract recited that the conveyance was to be made in consideration of such agreement, which was a “covenant which shall attach to and run with the land.” No time was fixed during which such agreement should endure. The deed recited that it was made “upon condition of the due performance” of the contract by the grantee. The packing house was built, but its operation was subsequently abandoned. Held, that such provision was not a condition subsequent, upon the breach of which a court of equity would set aside the deed, but was a covenant, and the remedy for its breach an action for damages.</p> <p>8. Removal oe Causes — Procedure Aeter Removal — Equity Jurisdiction.</p> <p>Where a cause is removed to a federal court from a state court which was competent to grant either legal or equitable relief, the plaintiff may proceed in the federal court either at law. or in equity; but if he elects to proceed in equity, and no case for equitable relief