Wykeham Rise, LLC v. Federer
CourtSupreme Court of Connecticut
Date FiledJune 19, 2012
DocketSC18653
JudgeNorcott; Palmer; Zarella; McLachlan; Eveleigh; Harper; Vertefeuille
StatusPublished
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Full Opinion
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WYKEHAM RISE, LLC v. ERIC A. FEDERER ET AL.
(SC 18653)
Norcott, Palmer, Zarella, McLachlan, Eveleigh, Harper and Vertefeuille, Js.
Argued February 2—officially released June 19, 2012
Linda L. Morkan, with whom were Brian R. Smith
and, on the brief, Joel C. Norwood, for the appellants
(defendants).
William C. Franklin, for the appellee (plaintiff).
Opinion
HARPER, J. The principal issue in this appeal con-
cerns the circumstances in which, as a matter of law,
a covenant restricting the use of land may be deemed
unenforceable between nonparties to the initial cove-
nant agreement. The defendants, Eric A. Federer and
Wendy R. Federer, appeal1 from the judgment of the
trial court granting summary judgment in favor of the
plaintiff, Wykeham Rise, LLC, with respect to the plain-
tiff’s declaratory judgment action seeking to establish
the unenforceability of certain restrictive covenants
contained in a deed to its property, and with respect
to the defendants’ counterclaims seeking to quiet title
to the plaintiff’s property and to enforce the restrictive
covenants. We conclude that summary judgment was
inappropriate because, contrary to the trial court’s con-
clusions, the covenants at issue in this case are not
void as a matter of law and questions of material fact
exist as to whether the defendants are entitled to
enforce them.
The following undisputed facts are relevant to this
appeal. Prior to 1990, the parcel of land now owned by
the plaintiff that is the subject of this appeal was owned
by the Wykeham Rise School (school). An adjacent
property, now owned by the defendants, was then
owned by Wendy Federer’s father, Bertram Read, a
member of the school’s board of trustees and past chair-
man of that board. In 1990, the school sold its property
(school property) to a limited liability corporation sub-
ject to a set of restrictive covenants, one of which pro-
vides that the grantee ‘‘will not construct any buildings
or other structures or any parking lots on that area of
the above described premises lying within 300 feet,
more or less, at all points, northerly from the most
southerly boundary of said premises, which area is now
commonly known as the ‘Playing Field.’ ’’ The deed
further provides that ‘‘[t]he foregoing covenants and
agreements shall be binding upon the [g]rantee, its suc-
cessors and assigns, shall inure to the benefit of the
[g]rantor, its successors and assigns, and shall run with
the land.’’ The covenants do not expressly reference
any third parties, and the school did not own any prop-
erty other than the parcel being sold. The year after
the conveyance, the school was administratively dis-
solved by the secretary of the state. Over the following
seventeen years, the school property was sold twice,
first to another limited liability corporation and ulti-
mately to the plaintiff in 2008, pursuant to a deed that
expressly referenced the covenants.2
During the period in which the school property was
owned by the plaintiff’s predecessor in interest, Read
sold the adjacent property to the defendants. Ten years
after that sale, and three years before the plaintiff pur-
chased the school property, Wendy Federer and the
chairman of the now defunct school’s board of trustees
executed a document purporting to assign the school’s
rights under the restrictive covenants to Wendy Federer
in exchange for consideration of $500. Several years
later, Wendy Federer also executed and recorded a
‘‘Declaration of Beneficial Ownership’’ claiming the
right, along with Eric Federer and their heirs and
assigns, to the benefit of the covenants as owners of
the adjacent property.
The present action arose after the plaintiff sought
permits to develop the school property in a manner
inconsistent with the terms of the restrictive covenants.
The defendants objected to the issuance of the permits
and brought an administrative appeal after one such
permit was issued, citing the restrictive covenants.3 The
plaintiff then sought a judgment declaring that the cove-
nants at issue ‘‘are null and void, are of no legal effect,
and are accordingly unenforceable as to the plaintiff,
its successors, and assigns . . . .’’ The defendants
brought counterclaims seeking, inter alia, to have the
covenants declared enforceable, to enjoin the plaintiff
from violating the covenants, and to receive monetary
damages. The defendants also asserted special defenses
of waiver and unclean hands to the plaintiff’s declara-
tory judgment action.
The plaintiff then moved for summary judgment with
respect to both its declaratory judgment action and the
defendants’ counterclaims, claiming that the covenants
are void and that the school’s transfer of its rights under
the covenants similarly is void. With respect to the
covenants, the plaintiff contended principally that they
neither fell within the three categories of restrictive
covenants permitted by law nor satisfied the require-
ment that there be ‘‘unity of title’’ between the burdened
and the benefited parcels of land at the time of covenant
formation. The plaintiff further asserted that any cove-
nant benefits that did exist did not pass to the defen-
dants, both because the covenants do not run with the
land and because the school did not validly assign the
benefits to the defendants. The defendants objected to
the plaintiff’s motion, claiming that, as a matter of law,
the covenants are not invalid because the abolition of
the unity of title doctrine expands the types of cove-
nants recognized by law and that, consequently, they
are entitled to enforce the covenants as third party
beneficiaries. They further claimed that there are mate-
rial issues of fact as to, inter alia: whether the school
conveyed its right to enforce the restrictive covenants,
whether the covenants benefit the defendants’ property
and whether the school intended to confer such a bene-
fit. In support of their claimed third party beneficiary
status, the defendants submitted several affidavits,
including one from the chairman of the school’s board
of trustees at the time the covenants were created
attesting that ‘‘[Read] . . . asked me if the [r]estrictive
[c]ovenants could be imposed, in part, to benefit his
property. I asked the other members of the [board of
trustees] if this was acceptable and we, on behalf of
the [s]chool, agreed to propose them in negotiations,
as long as the imposition of the [r]estrictive [c]ovenants
would not adversely affect the sale to [the buyer]. [The
buyer] did not object, so the [r]estrictive [c]ovenants
were included in the final deed.’’ On the basis of the
pleadings and affidavits submitted by both parties, the
trial court rendered judgment in favor of the plaintiff.
The court concluded that the ‘‘the restrictive covenants
are null, void and of no legal effect because they were
void at the time they were first conveyed in 1990,’’
relying in significant part on the fact that ‘‘the covenants
do not fall within any of the three classes [of restrictive
covenants] recognized by the appellate authority of this
state.’’ The court further concluded that the facts did
not establish that the covenants were intended to bene-
fit the defendants’ property and that the covenants were
of a personal nature that did not run with the land. In
light of these conclusions, the court did not reach the
issue of whether the school could assign its rights under
the covenants after its administrative dissolution. The
trial court also rejected the defendants’ equitable spe-
cial defenses. The defendants’ appeal followed.
On appeal, the defendants contend, inter alia, that
questions of material fact bear on the proper interpreta-
tion of the restrictive covenants, that this court’s deci-
sion in Bolan v. Avalon Farms Property Owners Assn.,
Inc., 250 Conn. 135, 735 A.2d 798 (1999), abolished the
unity of title doctrine so that a covenant may exclusively
benefit a third party, and that the covenants run with
the land. The defendants also claim that the trial court
improperly rejected their equitable special defenses of
waiver and unclean hands. The plaintiff, in response,
asserts that no material facts bear on the interpretation
of the covenants, that the covenants do not fall into
any of the three categories of restrictive covenants rec-
ognized by Connecticut law, and that unity of title
remains a prerequisite for the creation of covenants.
We conclude that summary judgment was improper
because the covenants were not void upon creation as
a matter of law and questions of material fact must be
resolved to determine whether the covenants can be
enforced by the defendants against the plaintiff. Addi-
tional facts will be set forth as necessary.
The standard governing our review of a decision to
render summary judgment is well established. ‘‘Practice
Book § 17-49 provides that summary judgment shall be
rendered forthwith if the pleadings, affidavits and any
other proof submitted show that there is no genuine
issue as to any material fact and that the moving party
is entitled to judgment as a matter of law. In deciding
a motion for summary judgment, the trial court must
view the evidence in the light most favorable to the
nonmoving party. . . . The party moving for summary
judgment has the burden of showing the absence of
any genuine issue of material fact and that the party
is, therefore, entitled to judgment as a matter of law.
. . . Our review of the trial court’s decision to grant [the
plaintiff’s] motion for summary judgment is plenary.’’
(Citation omitted; internal quotation marks omitted.)
Plato Associates, LLC v. Environmental Compliance
Services, Inc., 298 Conn. 852, 862, 9 A.3d 698 (2010).
To determine whether summary judgment was
proper in this case, we proceed by outlining the present
state of the law as it pertains to the creation and enforce-
ment of restrictive covenants, with the intent of both
clarifying the issue before us and resolving some appar-
ent confusion that has recently arisen in the lower
courts. Specifically, we address the considerations that
bear on three essential questions: were the covenants
properly created; if properly created, can they be
enforced against the plaintiff (the allegedly burdened
party); and can they be enforced by the defendants (the
allegedly benefited parties)?
In considering these questions, we bear in mind that,
‘‘[i]n construing a deed, a court must consider the lan-
guage and terms of the instrument as a whole. . . .
Our basic rule of construction is that recognition will
be given to the expressed intention of the parties to a
deed or other conveyance, and that it shall, if possible,
be so construed as to effectuate the intent of the parties.
. . . In arriving at the intent expressed . . . in the lan-
guage used, however, it is always admissible to consider
the situation of the parties and the circumstances con-
nected with the transaction, and every part of the writ-
ing should be considered with the help of that evidence.
. . . The construction of a deed in order to ascertain
the intent expressed in the deed presents a question
of law and requires consideration of all its relevant
provisions in light of the surrounding circumstances.’’
(Internal quotation marks omitted.) Bolan v. Avalon
Farms Property Owners Assn., Inc., supra, 250
Conn. 140–41.
I
The threshold question presented by this case—
whether the trial court properly concluded, as a matter
of law, that the covenants were not properly created—
can be answered in relatively straightforward fashion.
First, because the covenants were created as part of a
conveyance of land, they are subject to the formal writ-
ing and recording requirements set forth in General
Statutes §§ 47-54 and 47-10,5 respectively. See 1
Restatement (Third), Property, Servitudes § 2.7 (2000)
(‘‘[t]he formal requirements for creation of a servitude
are the same as those required for creation of an estate
in land of like duration’’).6 To be valid, covenants also
must not violate the public interest. See, e.g., Shelley
v. Kraemer, 334 U.S. 1, 19, 68 S. Ct. 836, 92 L. Ed. 1161
(1948) (racially restrictive covenants judicially unen-
forceable); Lampson Lumber Co. v. Caporale, 140
Conn. 679, 683, 102 A.2d 875 (1954) (‘‘The test of the
validity of [a covenant in restraint of trade] is the reason-
ableness of the restraint imposed. . . . To meet this
test successfully, the restraint must be limited in its
operation with respect to time and place and afford no
more than a fair and just protection to the interests of
the party in whose favor it is to operate, without unduly
interfering with the public interest.’’ [Citation omitted;
internal quotation marks omitted.]); 1 Restatement
(Third), supra, § 3.1 (2), (3), (4) and (5) (covenant or
other servitude invalid if it unreasonably burdens funda-
mental constitutional right, imposes unreasonable
restraint on alienation or trade or is unconscionable).
In the present case, no formal or public policy defects
in the formation of the covenants at issue have been
alleged, nor are any such invalidating features apparent
on the face of the covenants. It is therefore clear that
summary judgment could not properly have been ren-
dered on the ground that the covenants are inher-
ently invalid.
The trial court, in reaching the opposite conclusion,
relied in significant part on its determination that ‘‘the
covenants do not fall within any of the three classes
[of restrictive covenants] recognized by the appellate
authority of this state.’’ Although the notion that Con-
necticut courts ordinarily recognize only three ‘‘classes’’
of restrictive covenants has some support in recent
appellate case law; Max’s Place, LLC v. DJS Realty,
LLC, 123 Conn. App. 408, 414, 1 A.3d 1199 (2010); this
idea misconstrues our case law and muddies the already
murky law of servitudes. The first articulation of a three
category taxonomy of covenants in this state occurred
in 1928, when this court was asked to determine
whether one property owner could enforce a covenant
appearing in another property owner’s deed,7 when both
properties had been conveyed by a common grantor.
See Stamford v. Vuono, 108 Conn. 359, 143 A. 245 (1928).
Relying on New York case law, this court observed:
‘‘For our present purposes restrictive covenants of this
character may be divided into three general classes:
First, when there are mutual covenants in deeds
exchanged between owners of adjoining lands; second,
when under a general development scheme the owner
of property divides it up into building lots to be sold
under deeds containing uniform restrictions, and third,
where a grantor exacts covenants from his grantee pre-
sumptively or actually for the benefit and protection of
his adjoining land which he retains. Korn v. Campbell,
192 N.Y. 490, 495, 85 N.E. 687 [1908].’’ Stamford v.
Vuono, supra, 364. Contrary to the trial court’s interpre-
tation in the present case, this classification was not
intended to limit the varieties of covenants that lawfully
could be created, but was rather a shorthand device
for determining whether a lawfully created covenant
subsequently could be legally enforced between parties
other than the covenant’s original signatories. That the
categories articulated in Stamford relate to the enforce-
ability by and against strangers to the original deed
rather than the initial validity of covenants is confirmed
by reference to Korn, the New York case upon which
Stamford relies. In that case, the Court of Appeals of
New York concluded that, where a covenant did not
fall into these three categories, ‘‘[t]he original covenant,
which may be good in favor of [the initial grantor/
beneficiary] or his assigns as against any grantee of
[the original grantee] in this tract, is not enforceable
as between such grantees.’’ (Emphasis added.) Korn v.
Campbell, supra, 497.
The validity of covenants that do not fall within the
categories contemplated by Stamford is well illustrated
by this court’s decision in Hartford National Bank &
Trust Co. v. Redevelopment Agency, 164 Conn. 337, 321
A.2d 469 (1973). In that case, a trust provided money
for the purchase of land, contingent on the purchaser
covenanting not to develop the land in a manner prohib-
ited by the terms of the trust. Id., 338–39. Although the
covenant did not fall within the categories identified
in Stamford because it did not create a benefit in an
identifiable parcel of land, the court did not reject the
covenant as invalid. Instead, the court recognized it to
be a valid restrictive covenant creating a benefit not
tied to ownership of land: ‘‘[I]t seems clear that what
the restrictive covenants did create for the benefit of
the plaintiff trustee is an easement in gross . . . .’’8
Id., 341.
We also take this opportunity to clarify, contrary to
the plaintiff’s assertion, that a person need not simulta-
neously own both the benefited and the burdened par-
cels of land in order to create a valid covenant—that
is, ‘‘unity of title’’ is not a prerequisite for covenant
creation.9 Although we recognize that the Appellate
Court has recently indicated that such a requirement
does exist; Max’s Place, LLC v. DJS Realty, LLC, supra,
123 Conn. App. 414–15; the analysis underlying this
authority is misguided, in that it improperly conflates
the rules governing easements and covenants and fails
to properly apply this court’s abolition of the unity of
title doctrine even in the context of easements. This
court’s limited embrace of the unity of title requirement
can be traced to Curtin v. Franchetti, 156 Conn. 387,
389, 242 A.2d 725 (1968), wherein the court held that
an easement could be created only if one person simul-
taneously owned both the right-of-way on the servient
estate and the dominant estate benefited by the way.
In Bolan v. Avalon Farms Property Owners Assn., Inc.,
supra, 250 Conn. 144–45, the court expressly overruled
Curtin, holding that ‘‘the unity of title doctrine should
be abandoned and that the intent of the deed creating
an easement should be effectuated even if no unity of
title exists between the servient estate and the dominant
estate the easement is intended to serve.’’ Contrary to
the assumption of the Appellate Court in Max’s Place,
LLC, and the parties in the present case, Curtin did
not apply the unity of title doctrine to covenants or
indicate that the doctrine would apply in such circum-
stances, and we are aware of no other authority for
the proposition that such a requirement governs the
creation of covenants in Connecticut.10 Indeed, every
other appellate case that had applied the doctrine
before its abolition in Bolan had done so in the contexts
of easements or similar rights-of-way. See, e.g., Branch
v. Occhionero, 239 Conn. 199, 202, 681 A.2d 306 (1996);
Carbone v. Vigliotti, 222 Conn. 216, 217, 610 A.2d 565
(1992); Stankiewicz v. Miami Beach Assn., 191 Conn.
165, 170, 464 A.2d 26 (1983). Moreover, even if the
rule in Curtin did extend to covenants, this court’s
abandonment of that rule in Bolan would by the same
logic necessarily apply to covenants as well.11
II
Having determined that summary judgment could not
properly have been granted on the ground that the cove-
nants are inherently invalid, we address the possibility
that summary judgment was nonetheless appropriate
on the ground that the covenants are unenforceable.
More precisely, we consider whether the covenants,
presumably enforceable as between the original cove-
nanting parties, remain effective as between the parties
in the present case, who are both strangers to that
initial agreement. For purposes of clarity, we divide our
analysis of enforceability into two parallel inquiries,
outlining on the one hand the considerations governing
whether the burdens of the covenants pass to the plain-
tiff in this case, and on the other hand whether the
covenants’ benefits pass to the defendants.
A
The first question, whether the plaintiff can properly
be burdened by the covenants at issue, implicates both
principles of law and considerations of equity.12 Our
inquiry begins with consideration of whether the bur-
dens are to be characterized as ‘‘running with the land’’
(appurtenant) or as personal (in gross)—that is,
whether they apply to the burdened property itself or
rather to the person of the initial grantee. As we later
explain, in the present case the covenants may be
enforced at law only if they run with the land such that
the plaintiff acquired the school property subject to the
covenants. Even if the covenants do not run with the
land, however, we also must consider whether the plain-
tiff may nonetheless be subject to them as a matter of
equity. We conclude that the covenant burdens in the
present case are likely enforceable against the plaintiff
both at law and in equity.
1
Whether the covenants’ burdens run with the land
is, primarily, a question of the parties’ intent. Carlson
v. Libby, 137 Conn. 362, 367, 77 A.2d 332 (1950)
(‘‘[w]hether a promise with respect to the use of land
is a covenant real as distinguished from a personal
covenant depends upon the intent of the parties to the
promise, to be determined in the light of the attendant
circumstances’’);13 see Pulver v. Mascolo, 155 Conn. 644,
649, 237 A.2d 97 (1967) (‘‘[i]n the determination of the
meaning in which words in a restrictive covenant are
used, the controlling factor, when discovered, is the
expressed intent’’). The presence or absence of express
words of succession—such as ‘‘heirs’’ or ‘‘assigns’’—
offers strong, though not conclusive, evidence of
whether the parties intended to bind future owners of
the land. Kelly v. Ivler, 187 Conn. 31, 40, 42, 450 A.2d
817 (1982) (where servitude ‘‘does not contain words
of limitation, i.e., heirs and assigns, we would ordinarily
presume that a mere easement in gross was reserved,’’
but this presumption may be rebutted by circumstan-
tial evidence).14
The intent of the parties, however, is not dispositive,
insofar as obligations that are inherently personal can-
not be made appurtenant to the land. Thus, ‘‘[t]he use
of words of succession binding the ‘heirs and assigns’
of the grantee of restricted land does not in itself cause
the burden to run if the nature of the restriction is not
one which could run with the land. . . . It is well set-
tled that a covenant personal in its nature and relating
to something collateral to the land cannot be made to
run with the land so as to charge the assignee by the fact
that the covenantor covenanted on behalf of himself and
his assigns.’’15 (Citation omitted.) Pulver v. Mascolo,
supra, 155 Conn. 650–51. On the other hand, ‘‘[i]f [a
promise] touches the land involved to the extent that
it materially affects the value of that land, it is generally
to be interpreted as a covenant which runs with the
land.’’16 Carlson v. Libby, supra, 137 Conn. 367. With
respect to the relative strength of these competing con-
siderations, moreover, this court has long held that a
restrictive covenant ‘‘will not be inferred to be personal
when it can fairly be construed to be appurtenant to
the land . . . .’’17 Bauby v. Krasow, 107 Conn. 109, 114,
139 A. 508 (1927).
In addition to these considerations, one final formal
requirement also potentially bears on the question of
whether a covenant’s burdens may be said to run with
the land so as to bind a stranger to the covenant. Com-
mon-law doctrine dictates that covenants may run with
the land only if they are conveyed along with some
other interest in land. As this court previously has held,
relying on an earlier Restatement of Property, ‘‘[t]he
burden of a covenant will run with land only when the
transaction of which the covenant is a part includes a
transfer of an interest in land which is either benefited
or burdened thereby, or the covenant is made in the
adjustment of the mutual relationships arising out of
the existence of an easement held by one of the parties
in the land of the other. [5 Restatement, Property § 534
(1944)].’’18 Carlson v. Libby, supra, 137 Conn. 368.
2
Alongside the legal rules governing whether the
restrictive covenants in the present case run with the
land, long-standing equitable principles applicable to
restrictive covenants provide an important, and inde-
pendent, framework for determining whether the cove-
nants’ burdens may be enforced as a matter of equity.
This court has long recognized that ‘‘[t]he question
whether [a restrictive] covenant runs with the land is
material in equity only on the question of notice. If it
runs with the land, it binds the owner whether he had
knowledge of it or not. If it does not run with the land,
the owner is bound only if he has taken the land with
notice of it. In Tulk v. Moxhay [2 Phil. Ch. 774, 777,
41 Eng. Rep. 1143 (1848)] the leading case upon this
question, the court said . . . ‘The question is, not
whether the covenant runs with the land, but whether
a party shall be permitted to use the land in a manner
inconsistent with the contract entered into by his ven-
dor, and with notice of which he purchased.’ The deci-
sions proceed upon the principle of preventing one
having knowledge of the just rights of another from
defeating such rights, and not upon the theory that the
covenants enforced create easements or are of a nature
to run with the land.’’ Bauby v. Krasow, supra, 107
Conn. 112. Therefore, under the rules of equity, if the
plaintiff took the property in question with notice that
it is burdened by restrictive covenants, it may be bound
in equity to those burdens, regardless of whether the
burdens run with the land.
3
Turning to the summary judgment rendered in the
plaintiff’s favor in the present case, we cannot say as
a matter of law that the burdens of the covenants at
issue in this case do not run with the land. Indeed, there
is strong evidence to the contrary: the covenants were
formally created as part of a transfer of land; they
explicitly provide that they are ‘‘binding upon the
[g]rantee, its successors and assigns, shall inure to the
benefit of the [g]rantor, its successors and assigns, and
shall run with the land’’; and they appear on their face
to relate to the land and not to impose any conceivable
burden on the initial grantee independent of its owner-
ship of the land. We recognize that circumstantial facts
may emerge casting doubt on the apparent intent of
the covenanting parties to create burdens appurtenant
to the land; however, such determinations are for the
finder of fact to make with the benefit of evidence
introduced at trial.
Even if the covenants did not meet all the require-
ments at law for the burden to run with the land, the
issue of enforceability also turns on the possibility of
an equitable remedy. In the present case, there is uncon-
tested evidence indicating that the covenants at issue
restrict the plaintiff from using the land in certain ways,
rather than requiring affirmative action by the plaintiff,
a burden that could not be enforced in equity. There is
also uncontested evidence that the plaintiff knew of
these covenants at the time of purchase. Although fur-
ther facts may be uncovered that preclude the plaintiff
from being burdened by the covenants, at this point it
cannot be said as a matter of law that those burdens
do not apply to the plaintiff, either at law or in equity.
B
Looking to the other side of the equation, we now
outline the conditions that must be met in order for the
defendants in the present case to potentially enforce
the covenants against the plaintiff, such that summary
judgment could not have been rendered on this basis.
The defendants claim the right to enforce the covenants
as the successors or assigns of the covenants’ original
beneficiary or beneficiaries. We must therefore con-
sider the covenants’ benefits at two points in time: first,
looking to the time of the covenants’ creation, we deter-
mine the intended beneficiary or beneficiaries and the
type of benefit or benefits created; second, looking to
the present time, we determine whether the defendants
could obtain the right to those benefits by way of assign-
ment or devolution. As we previously have noted in our
recitation of the procedural history of this case, the
trial court decided that it was not necessary to reach
the plaintiff’s claim that the rights to enforce the cove-
nants had not been validly assigned to the defendants.
We conclude that the defendants are not precluded
from enforcing the covenants as a matter of law and
that material questions of fact exist regarding whether
they may enforce the covenants here.
As with covenant burdens, covenant benefits may be
appurtenant (directly benefiting the land) or in gross
(accruing to a person independent of ownership of land)
and may be held by the signatory to the covenant as
well as third parties that the parties to the covenant
intended to so benefit. The covenant benefits in the
present case, at the time of their creation, thus may
conceptually be described in one or more of four ways:
(1) the benefits inured to the school as the owner of a
piece of land; (2) the benefits inured to the school
independent of its ownership of land; (3) the benefits
inured to Read, Wendy Federer’s father, a third party
beneficiary, as owner of the land adjacent to the school;
and (4) the benefits inured to Read independent of his
ownership of land. Under the circumstances of this
case, we focus on scenarios two and three, leaving the
relatively implausible scenarios represented by one19
and four20 to the side. We consider each in turn along
with the related question of whether the defendants
properly could have obtained those benefits.
1
We consider first whether the benefits of the cove-
nants inured to the school in a manner that is indepen-
dent of its ownership of a particular parcel of land. It
is clear that these benefits in gross may validly be cre-
ated. See Hartford National Bank & Trust Co. v. Rede-
velopment Agency, supra, 164 Conn. 341. A further
question potentially arises regarding whether the right
to such benefits may be transferred or assigned.
Although this court previously has not addressed this
specific question, related case law indicates that such
assignments properly can be made, if consistent with
the covenanting parties’ intent. Assignability of rights
is clearly favored with respect to contracts generally.
Rumbin v. Utica Mutual Ins. Co., 254 Conn. 259, 267,
757 A.2d 526 (2000) (‘‘[o]ur analysis . . . begins by
emphasizing that the modern approach to contracts
rejects traditional common-law restrictions on the
alienability of contract rights in favor of free assignabil-
ity of contracts’’); see also Rossetti v. New Britain, 163
Conn. 283, 291, 303 A.2d 714 (1972) (clarifying that
whereas obligations under personal service contracts
cannot be delegated, rights under such contracts may
be assigned). We find this approach generally appro-
priate to covenant rights held in gross; however, recog-
nizing that the burdens of covenants typically endure
far longer than those of contracts, we add the important
caveat that covenant benefits (or burdens) in gross may
not be transferred if doing so would be inconsistent
with the intent of the parties. This proviso accords with
the Restatement (Third), which distinguishes between
the general class of freely alienable covenant benefits
in gross and a narrower class of ‘‘personal’’ covenants
that may not be transferred.21 1 Restatement (Third),
supra, § 4.6. Per the Restatement (Third), ‘‘[a] servitude
benefit . . . is personal if the relationship of the par-
ties, consideration paid, nature of the servitude, or other
circumstances indicate that the parties should not rea-
sonably have expected that the servitude benefit would
pass to a successor to the original beneficiary.’’22 Id.,
§ 4.6 (2). All benefits in gross that do not qualify as
personal are treated like other property rights and may
freely be transferred.23 Id., § 4.6 (1) (c); 2 Restatement
(Third), supra, § 5.8 (1) (‘‘[b]enefits in gross are prop-
erty interests that are transferred by assignment or
other conveyance effective to transfer an interest in
land, and otherwise devolve as property to their own-
ers’’). Accordingly, under this rubric, if the benefits
were intended to benefit the school, and the parties did
not intend them to be nonassignable, the school could
validly assign those benefits to the defendants.
2
Turning to the alternative plausible interpretation of
the covenants in the present case, we next consider
whether the defendants may enforce the covenants on
the theory that Read, as the owner of the land adjacent
to the school property, was the intended third party
beneficiary of the covenant between the school and the
initial buyer of the school property and that, by virtue
of their purchasing the benefited parcel of land, the right
to enforce the covenants devolved to the defendants.
The third party beneficiary doctrine provides that
‘‘[a] third party beneficiary may enforce a contractual
obligation without being in privity with the actual par-
ties to the contract. . . . Therefore, a third party bene-
ficiary who is not a named obligee in a given contract
may sue the obligor for breach.’’ (Internal quotation
marks omitted.) Wilcox v. Webster Ins., Inc., 294 Conn.
206, 217, 982 A.2d 1053 (2009). Although the third party
beneficiary doctrine was originally developed in the law
of contracts, this court has recognized that third party
beneficiaries may enforce covenants in land.24 See, e.g.,
Colaluca v. Ives, 150 Conn. 521, 526, 191 A.2d 340 (1963);
see also 1 Restatement (Third), supra, § 2.6 (2) (‘‘[t]he
benefit of a servitude may be granted to a person who
is not a party to the transaction that creates the ser-
vitude’’).
Under the third party beneficiary doctrine, ‘‘[t]he ulti-
mate test to be applied [in determining whether a person
has a right of action as a third party beneficiary] is
whether the intent of the parties to the contract was
that the promisor should assume a direct obligation to
the third party [beneficiary] . . . . [T]hat intent is to
be determined from the terms of the contract read in
the light of the circumstances attending its making,
including the motives and purposes of the parties. . . .
[I]t is not in all instances necessary that there be express
language in the contract creating a direct obligation to
the claimed third party beneficiary . . . .’’25 (Citation
omitted; internal quotation marks omitted.) Dow & Con-
don, Inc. v. Brookfield Development Corp., 266 Conn.
572, 580, 833 A.2d 908 (2003). We also note that,
although construction of a deed is ultimately a matter
of law and subject to plenary review; Il Giardino, LLC
v. Belle Haven Land Co., 254 Conn. 502, 511, 757 A.2d
1103 (2000); the analysis is a context dependent one:
‘‘[I]f the meaning of the language contained in a deed
or conveyance is not clear, the trial court is bound to
consider any relevant extrinsic evidence presented by
the parties for the purpose of clarifying the ambigu-
ity.’’ Id.
3
With this framework in mind, we now look to the
undisputed facts of the present case relating to cove-
nant benefits and the intent of the covenanting parties
that may be discerned from those facts. First, it is possi-
ble to conclude that the covenants at issue created a
transferable benefit in gross that inured to the school
independent of its ownership of land. Specifically, the
deed provides that the covenant benefits ‘‘shall inure
to the benefit of the [g]rantor, its successors and
assigns, and shall run with the land.’’ This language
makes clear that the parties intended to create an endur-
ing benefit that would survive the school, but because
the school retained no land following the sale, any bene-
fits conferred on the school cannot possibly be appurte-
nant to the land and therefore must be construed to be in
gross. See Pulver v. Mascolo, supra, 155 Conn. 650–51.26
The possibility that the covenants at issue created a
transferable benefit in gross in the school sets up a
potentially dispositive question regarding whether the
school has transferred that right to Wendy Federer.27
It appears that the school and Wendy Federer attempted
to accomplish such a transfer, but that the putative
transfer occurred after the school had been dissolved
by administrative order pursuant to General Statutes
§ 33-890.28 Under General Statutes § 33-891 (a), ‘‘[a] cor-
poration administratively dissolved continues its corpo-
rate existence but may not carry on any business except
that necessary to wind up and liquidate its business
and affairs under [General Statutes § 33-884] . . . .’’
The question of whether corporate action qualifies as
‘‘winding up’’ is a factual matter for the trial court to
determine, subject to a clearly erroneous standard of
review. See Campisano v. Nardi, 212 Conn. 282, 290,
562 A.2d 1 (1989). In the present case, the trial court
concluded that the covenants are void and therefore
made no determination whether there are material ques-
tions of fact regarding whether the school’s attempted
transfer of its rights under the covenant qualified as
winding up its affairs.
With respect to the question of whether the defen-
dants could enforce the covenants in the present case
as third party beneficiaries, the trial court concluded
that ‘‘the present deed expresses a clear intent to benefit
the grantor, the school, not the defendants’ property,
and the surrounding circumstances do not contradict
that intent.’’ After a review of the record, we conclude
that the trial court improperly determined that there
are no issues of material fact regarding whether the
parties to the original contract intended that the cove-
nants would provide an appurtenant benefit to Read
as owner of the adjacent property now owned by the
defendants. Although the covenants do not specifically
mention the adjacent property or Read, the circum-
stances surrounding the transaction at the very least
create an ambiguity as to whether the covenants were
intended to confer such a benefit. Although the school
may