Los Angeles Land & Water Co. v. Kane

CRAIL, J.,

pro

tem.

The plaintiff owned a tract of land containing about two thousand seven hundred acres, located in the San Fernando Valley, which for several years has been within the city limits of Los Angeles and which is subdivided into five-acre lots with streets running through it. The land is composed of the detritus washed down from the mountains, and is covered with a thin layer of soil, except that portion within the two washes or beds of the Big Tejunga Creek. The plaintiff sold lot 2 of block 22 thereof to Homer A. Hansen by a deed which contained the following conditions: “Subject to the condition subsequent that no part of said property shall be

used

for the manufacture or sale of crushed rock, gravel or sand prior to January 31,

[420]

1934.” All other sales in the tract were made subject to the same condition. On May 7, 1924, about seventy-five dwellings had been erected upon those lots. On that date the said Hansen executed a contract oí sale of said lot to the defendant Mrs. Kane, subject to the same condition. She in her turn leased the lot to other defendants, who, with full knowledge of said conditions, began the construction of a rock-crushing plant upon said property in spite of a notice to all defendants calling their attention to said condition and that their rights in the lot would be forfeited. The plant was finished and operations begun when plaintiff brought this action, asking for the recovery of the property and an injunction. Hansen on his part filed a cross-complaint against the other defendants, asking the same relief. Answers were filed and a trial had and thereafter a judgment was entered as prayed in favor of the plaintiff and also in favor of Hansen against the appellants. It is from this judgment that the appeal is taken; and appellants raise three points for reversal.

It is first contended that the condition is in restraint of trade and therefore void. Appellants claim that any contract which forbids or prevents the manufacturing of crushed rock is in restraint of trade in that particular line of business and void. It will be noticed that the restriction is against the use of the property. There is nothing to prevent the removal of the rock, gravel, or sand from the lot and doing with it whatever one chooses. It is the settled law of California that a condition subsequent prohibiting the carrying on of a particular business upon property conveyed is valid and will be upheld where the question of monopoly is not involved or the purpose of the condition is not unlawful, and possibly other exceptions which do not exist here.