Gallagher v. Bell

Gallagher (defendant) bought land from the Sisters of Mercy and separately agreed with Bell (plaintiff) to assume covenant obligations -- dedicating land for street construction and sharing construction costs -- expressly binding his "heirs and assigns." Gallagher later sold the property to Camalier, who knew of the covenant obligations and demanded an indemnification agreement from Gallagher as a condition of the sale; when Bell sought to enforce the covenant, Camalier refused, citing the indemnification agreement, so Bell sued Gallagher instead. The jury found the covenant was personal to Gallagher rather than running with the land and awarded Bell judgment against Gallagher, who appealed.