Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Stranger to the Deed Rule

By Stewart E. Sterk
February 01, 2024

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Estate of Thompson v. Wade, 69 NY2d 570. In justifying the rule despite its obvious frustration of the parties' intention, the court emphasized that grantors can readily avoid frustration of intent by arranging a direct conveyance to the intended beneficiary of the easement. Daniello v. Wagner, 2023 WL 8245882, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.

The Daniello case involved two neighboring Montauk parcels originally owned by Paley. In 1974, Paley conveyed one of the parcels to Neimanis, who built a driveway that encroached on Paley's retained land. Then, in 1989, Paley conveyed the retained land to Brancaccio and Boland, subject to an easement in favor of Paley "to use and maintain as part of a driveway and for no other purpose the existing driveway." The 247-square-foot dimensions of the easement were described by metes and bounds. Note that this deed was executed two years after the Court of Appeals decision in Estate of Thompson v. Wade. When Brancato and Boland conveyed their parcel to Wagner in 2005, the deed was expressly made subject to the same easement in favor of Neimanis' parcel. The Daniellos bought Neimanis' parcel in 2018 and renovated the driveway, replacing retaining walls and adding new ones. When a dispute arose over the renovations and the Daniellos' use of the driveway for parking, the Daniellos brought a declaratory judgment action to establish that they had both a deeded and a prescriptive easement over the disputed driveway area. Supreme Court granted summary judgment to the Daniellos on their claim to a deed easement, but denied summary judgment dismissing Wagner's counterclaim seeking injunction against parking on the easement. Both parties appealed.

The Second Department started by indicating that Supreme Court had erred in concluding that the Daniellos had acquired a deeded easement to the driveway area. The court invoked the stranger to the deed rule, citing Estate of Thompson v. Wade.

Read These Next
How Secure Is the AI System Your Law Firm Is Using? Image

In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.

COVID-19 and Lease Negotiations: Early Termination Provisions Image

During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.

Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support Image

The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.

The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies Image

Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.

Authentic Communications Today Increase Success for Value-Driven Clients Image

As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.