Grant-Jeter Co. v. American Real Estate Co.
| Decision Date | 15 October 1924 |
| Docket Number | 4344. |
| Citation | 125 S.E. 73,159 Ga. 80 |
| Parties | GRANT-JETER CO. v. AMERICAN REAL ESTATE CO. |
| Court | Georgia Supreme Court |
Syllabus by the Court.
An agreement between the owner of an apartment house and a real estate agent, by which the owner did "give, grant, and sell to" said agent (a corporation), "its successors and assigns, the sole and exclusive right for the present leases, and for a period of five years, beginning September 1, 1923, to rent, manage, and supervise" said property, and did "confer upon said agent full and general power to make leases in his name, and in the name of his successors and assigns, with tenants and prospective tenants for said premises, * * * to purchase supplies for said premises, to collect the rentals thereon, to hire and discharge janitors, * * * and in general to manage and supervise said property," did not constitute a covenant running with the land, nor did it confer upon the agent an easement in the property, nor was it such a restrictive agreement relating to the use and enjoyment of the land, as equity treats as one going with the land into the hands of a purchaser with notice; but such agreement is of a collateral nature to the land, and is a personal obligation of the maker, which will not bind or pass to assignees, even where they are expressly named and take with notice of such agreement.
Courts of equity will not generally undertake to enforce specific performance of contracts involving personal services which are material or mechanical in character; and the facts of this case do not bring it within any of the exceptions to the above rule.
The petition makes a case of a mere breach of a personal contract, for which the maker is liable in damages; and it not being alleged or shown that irreparable injury will result to the plaintiff, a court of equity will not decree specific performance of the contract.
The court properly refused to grant an interlocutory injunction.
Additional Syllabus by Editorial Staff.
To constitute a "covenant running with the land," there must first be an interest or estate therein granted, to which the covenant must relate, and the act to be done must concern the interest created or title conveyed.
Error from Superior Court, Fulton County; W. D. Ellis, Judge.
Suit by the Grant-Jeter Company against the American Real Estate Company. Judgment for defendant, and plaintiff brings error. Affirmed.
Troutman & Troutman, of Atlanta, for plaintiff in error.
Hewlett & Dennis, of Atlanta, for defendant in error.
The owner of the Sidney apartments in the city of Atlanta, on April 18, 1923, entered into a written contract with the Grant-Jeter Company, a real estate renting agent, whereby for a good and valuable consideration, he did "give grant, and sell to said company, its successors and assigns the sole and exclusive right for the present leases, and for a period of five (5) years, beginning September 1, 1923, to rent, manage, and supervise" said property, and did further "bargain and confer upon said agent full and general power to make leases in his name, and in the name of his successors and assigns, with tenants and prospective tenants for said premises, * * * to purchase supplies for said premises, to collect the rentals thereon, to hire and discharge janitors, * * * and in general to manage and supervise said property." This contract contained the further stipulation, "that this exclusive agency contract and agreement shall be binding upon all corporations, their successors and assigns, and upon all persons, their heirs and assigns, who shall acquire the title to said property and to whom the interest of said owner shall or may accrue by purchase or otherwise," and "all rights, obligations, and benefits of this agreement shall inure to the benefit of and be binding upon the heirs, representatives, successors, and assigns of the parties hereto." The Grant-Jeter Company was to receive a commission of 5 per cent. on all rents accruing upon leases made by it during said term. On June 1, 1923, E. F. Culpepper, the owner, sold and conveyed this property to John R. Webb. While Webb owned the property the real estate agent made several leases to tenants for the year beginning September 1, 1923, and ending August 31, 1924. On July 28, 1923, the American Real Estate Company entered into a written contract with Webb, by which it agreed to buy from him this property upon certain terms and conditions. At the time of this purchase the purchaser had no notice of the above contract between Culpepper and the real estate agent, which was not recorded until August 2, 1923. On August 15, 1923, the American Real Estate Company, through its president, was given actual notice of said contract and of the rights of the Grant-Jeter Company thereunder. On July 30, 1923, the American Real Estate Company...
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