City of Klamath Falls v. Bell

490 P.2d 515 (1971)

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City of Klamath Falls v. Bell

Oregon Court of Appeals
490 P.2d 515 (1971)

  • Written by Jamie Milne, JD
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Facts

Fred Schallock and Floy Daggett were the two shareholders of a corporation that owned land in the City of Klamath Falls (the city) (plaintiff). The corporation gifted the land to the city so long as the land was used for a library. Per the conveyancing deed, if the land ceased to be used as a library, then title passed to Schallock and Daggett or their heirs and assigns. The city operated a library for over 40 years. When the library closed, the corporation had been dissolved, and Schallock and Daggett had died. The city sued their heirs, Constance Bell, Marijane Flitcraft, and Caroline Crapo (defendants), seeking a declaration regarding the land’s ownership. Bell and Crapo conveyed any interest in the property to Flitcraft. The trial court concluded that the heirs’ executory interest was void under the rule against perpetuities and declared the city to hold fee simple title. The heirs appealed.

Rule of Law

Issue

Holding and Reasoning (Schwab, C.J.)

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Casebooks

Property

Key Terms

  • Fee Simple DeterminableAn interest in land that terminates upon the occurrence of a specified condition.
  • Rule against perpetuitiesA common law rule requiring all future interests to vest no later than twenty-one years after the life of a person who was living when the interests were created. Since future interests that violate the rule against perpetuities are void, some states have enacted statutes that qualify or supersede the common law rule.
  • Reversionary InterestA future interest in property that reverts back to the original grantor upon occurrence of a future event or termination of the current holder’s tenancy. Also called a reversion. A reversion arises if a grantor conveys only part of his possessory estate. When the grantee's estate ends, the property reverts, or returns, to the grantor.
  • Executory InterestAny future interest that: (1) will ripen into possession only on the occurrence of some event specified in the conveyance; (2) is held by a grantee, not the grantor or the grantor's successor in interest; and (3) does not meet the precise definition of a remainder. An executory interest can be springing or shifting.

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