State Ex Rel Commissioner, Department of Transportation v. Ilya Dyskin et al.

The question presented on this appeal is whether a covenant, i.e., a promise, by a grantor to pay – in a deed conveying an undivided one-third interest in a piece of property – all property taxes and other expenses associated with the 100% interest in the property is binding on successor grantees of her remaining two-thirds interest. Sonja Taylor conveyed an undivided one-third interest in the property to Fred T. Hanzelik. Taylor agreed to pay “all taxes, expenses and obligations regarding” the property, including those on Hanzelik’s portion. Taylor later conveyed her remaining two-thirds interest to Shane Coughlin, who later conveyed it to Fifth Project, LLC, which later conveyed it to defendants Ilya Dyskin and Tatiana Dyskin. Hanzelik argues that Taylor’s covenant to pay property taxes for the entire ownership interest, including Hanzelik’s one-third interest, is binding on the Dyskins. The trial court agreed and ordered the Dyskins to pay the entire property tax bill. After examining the deeds in the chain of title, we find no evidence of an intention that Taylor’s covenant would run with the land and bind successor grantees of the two-thirds interest. Accordingly, we reverse the judgment of the trial court.