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The City of Klamath Falls v. Bell

Law Dictionary
CASE BRIEFS

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Property Law Keyed to Cribbet

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Bloomberg Law

Citation. 7 Or. App. 330, 490 P.2d 515 (Ct. App. 1971)

Brief Fact Summary. In 1925 a corporation gift deeded land to the City of Klamath Falls “as long as” the city used the land for a library, and thereafter unto Fred Schallock and Floyd Daggett, their heirs and assigns. The city closed the library in 1969 when the books were moved to another library.

Synopsis of Rule of Law. Even though the gift over of the property to the heirs and assigns is void under the rule against perpetuities, there is a possibility of reverter to the grantor which, under Oregon law, cannot be gifted over, and is thus retained in the grantor.


Facts. In 1925 a corporation gift deeded land to the City of Klamath Falls “as long as” the city used the land for a library, and thereafter unto Fred Schallock and Floyd Daggett, their heirs and assigns. The city closed the library in 1969 when the books were moved to another library. Thereafter, the city sued to quiet title in fee as to the land. The Defendants were all of the heirs of Schallock and Daggett. The grantor corporation, Daggett-Schallock Investment Company had been dissolved and the assets (including any interest in the property) were transferred to Fred Schallock and Floyd Daggett. Thereafter, all of the remaining heirs transferred their interest, if any, in the property to Defendant Marijane Flitcraft. The trial court found for the city based on its finding that the gift over to Fred Schallock and Floyd Daggett was void under the rule against perpetuities. The Defendants appealed.

Issue. Did a possibility of reverter remain in the grantor corporation under the deed, which by law in Oregon cannot be alienated, and would therefore remain in the corporation or its successors and heirs of successors?

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