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Caullett v. Stanley Stilwell & Sons, Inc. | 170 A.2d 52 (1961)
Both restrictive covenants and equitable servitudes are covenants, or simply promises, that restrict the use of property and bind property owners and their successors. The major differences are that equitable servitudes have more relaxed standards and are remedied by injunction, as opposed to money damages. In Caullett versus Stanley Stilwell and Sons, a New Jersey court considered whether a deed provision was enforceable as a restrictive covenant or, alternatively, as an equitable servitude.
Stanley Stilwell and Sons sold an undeveloped piece of property to Paul and Evelyn Caullett for $4,000. Under one provision in the deed, Stanley reserved the right to build the original structure on the property. Subsequently, Stanley and the Caulletts negotiated the terms under which Stanley would build a house on the property. When the negotiations failed, the Caulletts filed a quiet-title action in New Jersey state court to determine whether the building provision was enforceable.
The trial court determined that the building provision was unenforceable and entered summary judgment for the Caulletts. On appeal to the New Jersey Superior Court, Appellate Division, Stanley argued that the provision was an ordinary restriction on property use. Meanwhile, the Caulletts maintained that the provision was too vague to be enforced and that, in any event, it provided only a personal benefit to Stanley.
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