Phelan v. Brady

In Phelan v. Brady, 74 Sickels 587 (1890) the predecessor landlord had permitted the defendant to occupy rooms in the premises and to lease other rooms to various tenants and collect their rent. The plaintiff was not informed of the defendant's presence and thus had no actual notice or knowledge of her presence. The Court held that it did not matter whether the plaintiff "was in fact ignorant of any right or claim" of the defendant to the premises, as "it is enough that she was in possession . . . as that fact operated in law as notice to the plaintiff of all her rights." The Court explained: It may be true, as has been argued by the plaintiff's counsel, that when a party takes a conveyance of property situated as this was, occupied by numerous tenants, it would be inconvenient and difficult for him to ascertain the rights or interests that are claimed by all or any of them. But this circumstance cannot change the rule. Actual possession of real estate is sufficient notice to a person . . . and to all the world of the existence of any right which the person in possession is able to establish. (Id., at 591-592). The Court also observed that the plaintiff had been on the premises before the transfer and could have inquired into the defendant's rights, and that while his failure to do so would not have changed the result in the action, "it shows that the plaintiff's loss is to be attributed to his confidence in [the transferor], who probably deceived him, and to his failure to take notice of [the defendant's] possession." (Id.).