HomeMy WebLinkAbout2389 s
{
r
i
i
Now that we understand the rule against perpetuities
this Court finds that this. appears to be a case of first impression
in Florida as to "perpetual lease renewals." Other applicable law
f
connected with this matter is: t
(1) Article 1, 510, United States
Constitution says that states cannot .
impair the obligation of contracts.
(2) Article 1, 510,. of the Florida
Constitution states that no law impairing
the obligation of a contract shall be
passed.
(3) California cases cited in 31 ALR
2d 622 (see also Haggerty v. Oakland,
66 ALR 2d 718-728) indicate dissatis-
faction with "perpetual lease renewals."
(4) 25 Fla. Jur. 70, which indicates
approval of "perpetual lease renewals."
(5) Thompson Commentaries on the
Modern Law of Real Property, 51121 at
p. 428, provides that:
"Perpetual ,covenants to renew, while.
valid, are not favored, since they
create perpetuity...Perpetual leases
are not favored, and general covenants
as to the right of renewal are usually
limited to a single renewal unless an .
intention to create a perpetuity clearly
appears. Still, a covenant in a lease
for the perpetual renewal thereof is '
valid, and passes as an incident when
the lease is assigned by a proper
description. A lease may grant an
r indefinite number of renewals or~per-
E petual renewals, as where there is a
lease for a definite term, with the
right to hold the premises thereafter
at a higher rental as long as the
lessee may. want them. Such covenants,
however, are not regarded with favor
and a lease will not be construed as
conferring the right to perpetual re-
~ newal unless. the language employed
clearly indicates such to have been the
intention of the parties. A lease may
5 be so worded as to grant the right to
an indefinite number of renewals."
i
Thompson further provides in 51088, at p. 313,
that:
"Technically a lease no matter for how
' .long a term does not violate the 'rule
against perpetuities,' i.e., either the
absolute suspension of alienation or
the rule against remoteness of vesting. i
The interests of the lessor and lessee s
are both vested and together they Gan
pass the entire estate and clear any
burdens created by the lease."
i
Y -
' -4- ~