Issue: Will a remainder left to a grantor’s heirs become a reversion in the grantor under the Doctrine of Worthier Title?
Rule: The Doctrine of Worthier Title, a rule of construction, creates a presumption in favor of reversions which may be rebutted by indication of the grantor’s contrary intent gathered from the instrument as a whole.Stoller v. Doyle (1913)
Facts: Lawrence Doyle first conveyed a fee to Frank Doyle with a contingent interest in the wife and children of the grantee and a reversion in the grantor. Later, Lawrence executed a new deed purporting to remove all restrictions of the first grant. Frank Doyle subsequently conveyed the land to Stoller. Stoller sued to quiet title.
Issue: Did the first grant create a contingent remainder subject to destruction or an executory interest not subject to destruction?
Rule: An interest following a fee held by one other than the grantee or grantor is an executory interest not subject to destruction.Capitol Federal Savings & Loan Ass’n v. Smith (1957)
Facts: The owners of certain lots agreed to forbid the sale of those lots to blacks. Failure to abide by the agreement resulted in automatic divestment of ownership rights.
Issue: Are future interests subject to equal protection analysis?
Rule: A future interest arising from a racially restrictive covenant violates the Fourteenth Amendment.The City of Klamath Falls v. Bell (1971)
Facts: A corporation granted land to the City to be used as a library. The deed provided that if not so used, title should pass to the descendants of the corporation’s shareholders. Subsequently, the City ceased using the land as a library.