Kenneth O. Hart v. Blue Ribbon Construction Company
Opinion
The appellant, Kenneth O. Hart, com-lains of the order of the United States District Court, Southern District of Florida, on his petition to review an order of a Referee in Bankruptcy. The District Court affirmed the order of the Referee.
Blue Ribbon Construction Company obtained a franchise from the City of Lan-tana, Florida, to furnish water and sewage facilities to certain lots owned by Blue Ribbon which it sold to Lindsey-Mundy Corporation for $2,850.00 per lot; $850.00 of the purchase price being allocated to the installation cost of running lines for the proposed service. Lindsey-Mundy made no down payment, but gave a purchase money mortgage to-Blue Ribbon and thereafter mortgaged the property to Builders Finance Corporation for a construction loan, and Blue-Ribbon subordinated its mortgage to the mortgage of Builders Finance which had the effect of making the latter a first, mortgage. There is a statement in the subordination agreement and in the mortgage from Lindsey-Mundy to Blue Ribbon that Blue Ribbon will provide sewer and water mains at its own expense, and. a statement to the effect that the agreement shall inure to the benefit of “ * * *• successors or assigns * * * ”.
Lindsey-Mundy became a bankrupt and Builders Finance foreclosed its mortgage- and became the purchaser at the sale. The property was sold in the bankruptcy-proceedings free and clear of all liens. Thereafter, Hart purchased 25 lots from Builders Finance and now seeks a mandatory injunction to require Blue Ribbon to furnish a “hook-up” of the lines to the 25 houses at nominal cost and contends that he (Hart) should not be required to pay the $850.00 now demanded by Blue-Ribbon.
The District Court held that at the-foreclosure sale, Builders Finance could get only the interest which Lindsey-Mundy held in the land; that the water and sewage rights were not an interest in the land, and further that no effort was *401 made to convey the same to Hart. Accordingly, any obligation which existed between Blue Ribbon and Lindsey-Mundy with respect to water and sewage was not such an interest as was conveyed at the foreclosure sale; nor was any other effort made to transfer such rights to Hart. It was further held that no third party beneficiary rights were created in Hart. ~
We have carefully reviewed the order of the Referee and the order of the District Court affirming it and have concluded that it should be affirmed.
The judgment is Affirmed.
Reference
- Full Case Name
- Kenneth O. HART, Appellant, v. BLUE RIBBON CONSTRUCTION COMPANY, Appellee
- Status
- Published