Central Delaware County Authority v. Greyhound Corp.
Supreme Court of Pennsylvania
588 A.2d 485 (Pa. 1991)
Baldwin Locomotive Works (Baldwin) (defendant) conveyed two parcels of land to the Central Delaware County Authority (Authority) (plaintiff) in a fee simple subject to a restrictive covenant. The deed provided that the land was to be used only for public purposes and if it stopped being used for public purposes, Baldwin would have the right to repurchase. The Authority operated a sewage treatment plant on the land, but eventually ceased its operations. Upon doing so, the Authority brought suit to quiet title to the land, alleging that the restriction was void, in violation of the rule against perpetuities. The trial court ruled in favor Baldwin that the restriction did not violated the rule against perpetuities. The Superior Court of Pennsylvania ruled that the restriction violated the rule, but was nonetheless valid because of its public benefits. The Authority appealed.
Rule of Law
Holding and Reasoning (Flaherty, J.)
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