Kerr v. Bauer

373 P.3d 1263, 278 Or. App. 224, 2016 Ore. App. LEXIS 573
CourtYamhill County Circuit Court, Oregon
DecidedMay 11, 2016
DocketCV030231; A153944
StatusPublished

This text of 373 P.3d 1263 (Kerr v. Bauer) is published on Counsel Stack Legal Research, covering Yamhill County Circuit Court, Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerr v. Bauer, 373 P.3d 1263, 278 Or. App. 224, 2016 Ore. App. LEXIS 573 (Or. Super. Ct. 2016).

Opinion

SERCOMBE, R J.

In 1956, Sylva Kerr deeded property in trust to two of her children for the benefit of all of her descendents. That deed was inconsistent with the common-law rule against perpetuities. The trustees attempted to reconvey the property to Kerr by deed. Kerr then deeded the property outright to three of her children. The property was later conveyed to a family trust. Three of Kerr’s descendents brought suit to cancel the later deeds and quiet title to the property in the original trustees. The trial court granted that relief and modified the 1956 deed to correct the rule against perpetuities violation. In Kerr v. Bauer, 232 Or App 374, 222 P3d 1117 (2009), rev den, 348 Or 414 (2010) {Kerr I), we concluded that the trial court erred in reforming the 1956 deed in the manner that it did. On remand, on cross-motions for summary judgment, the trial court concluded that the 1956 deed was void and that the later deed from Kerr to her children was valid. On appeal, we agree with the court’s determinations, about the legal effect of the deeds, and we affirm its rulings on the cross-motions for summary judgment.

We restate the underlying facts from Kerr I:

“The land at issue was once owned by Sylva Kerr. Sylva had eight children, including Marjorie Kerr Bauer (Marjorie); Kerwin D. Kerr, Senior (Senior); and J.M. Kerr (J. M.). The parties to this action include three of Sylva’s grandchildren: plaintiff Bryan Kerr, who is J. M.’s son; plaintiff Kerwin Kerr II (Junior), who is Senior’s son; and defendant Donald Bauer, who is Marjorie’s son. J. M. is also a defendant.
“* * * The property at issue, according to Bryan, ‘was the homestead of my grandparents, the childhood home of their children, a 40-acre retreat in the Coast Range, and through several generations has been a special and unique place of rest and recreation for their descendents.’ Donald similarly refers to annual family reunions held on the property for 35 years, as well as other family recreational activities.
“In 1956, Sylva executed a warranty deed (Deed #1) transferring the property to her sons Senior and J. M., in trust. Deed #1 identifies Sylva as the ‘widow of Henry Allen Kerr, deceased,’ and provides, in part:
[227]*227“‘This grant is made for the purpose of creating a place of rest, recreation and recuperation for each and all of the children, grandchildren and descendants of Sylva Leona Kerr and Henry Allen Kerr, including the grantees specifically named herein, to hold in trust as herein designated, grantees to pay all taxes and care for the property.’
“After Sylva executed Deed #1, attorneys told J. M. and Marjorie that it violated the rule against perpetuities. In 1968, Senior and J. M., as trustees, executed a deed (Deed #2) conveying the property back to Sylva. Deed #2 provides that the conveyance was made ‘for the reason that the trust created by [Deed #1] is invalid in that it violates the rule against perpetuities and in order that said grantee may reconvey said premises to the grantee’s children, [Senior, J. M., and Marjorie], as tenants in common, for their use and benefit.’ Two days later, Sylva executed a bargain and sale deed (Deed #3) conveying the property to Senior, J. M., and Marjorie.
“In 1989, Senior executed a bargain and sale deed (Deed #3.5) conveying his interest in the property to Marjorie and J. M. Later that year, Marjorie and J. M. executed a bargain and sale deed (Deed #4) that conveyed the property to the Kerr Homestead Trust. Marjorie and J. M. also executed a trust agreement for the Kerr Homestead Trust.”

232 Or App at 377-78 (brackets in original; footnote omitted).

As noted, the trial court in Kerri “‘quiet[ed] title in the trustees pursuant to the 1956 deed (Deed #1) and order [ed] all subsequent deeds of the real property can-celled.’” Id. at 379. In a letter opinion, the trial court had acknowledged that Deed #1 violated the common-law rule against perpetuities but held that the interests of the grandchildren and descendents could be severed from the interests of the children, so as to change the deed to cure the rule against perpetuities defect. The trial court also concluded that the trustees under Deed #1 did not have the power to convey the property to Sylva in Deed #2, and, therefore, all deeds that followed that conveyance were void as a matter of law. The trial court subsequently entered a judgment to that effect.

[228]*228On appeal from that judgment, Donald argued that severance was improper and Deed #1 was therefore void. Id. at 380. In Kerri, we concluded that the rule against perpetuities violation could not be cured by severance. We explained that the doctrine of severance can be applied only when “severing invalid provisions from the remainder of the trust” would not be “contrary to the settlor’s purpose of plan” and interpreted Deed #1 to “evidence[] Sylva’s intent to benefit her children, grandchildren, and descendents by preserving the property as a place of rest and recreation for all of them equally, with no end date and no provision for the final disposition of the property to any individual.” Id. at 381-83. Thus, Deed #1 was “one entire scheme from which interests cannot be severed without defeating Sylva’s manifest purpose to benefit ‘each and all’ of the beneficiaries.” Id. at 383. Accordingly, we reversed and remanded the trial court’s decision.

In Kerri, we noted, but did not resolve, one of Donald’s alternative arguments, which is relevant to this appeal. After the trial court had entered an order granting plaintiffs’ motion for summary judgment and directing entry of a judgment cancelling Deeds #2 to #4 and quieting title in J.M. Kerr (J.M.) and Senior, Donald petitioned the court to reform Deed #1 under ORS 105.970(2).1 Donald argued that the court could better preserve Sylva’s intent by modifying the deed to include a savings clause and additional trustees.2 Bryan, Junior, and J.M. responded that, [229]*229since the only remaining interest in the trust was that of the children, Donald was no longer an “interested person” who was qualified to seek reformation. See ORS 105.970(2) (providing that a court “may reform” a disposition to conform to the rule against perpetuities “upon the petition of an interested person”). The parties reiterated those arguments on appeal, but we stated that “[o]ur disposition on Donald’s assignment of error obviate [d] any need to address” them. Kerr I, 232 Or App at 383.

On remand, Bryan and Junior again moved for summary judgment on their claim to cancel Deeds #2 to #4 and quiet title in J.M. and Senior. Donald also moved for summary judgment on that claim. Along with the merits of plaintiffs’ claim, the parties disputed whether the decision in Kerr I limited the issues remaining for the trial court to decide on remand.

Bryan and Junior—joined by J.M.—asserted that they were entitled to summary judgment for two reasons: First, Kerr I was premised on the fact that Deed #1 was valid and not void ab initio

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Cite This Page — Counsel Stack

Bluebook (online)
373 P.3d 1263, 278 Or. App. 224, 2016 Ore. App. LEXIS 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerr-v-bauer-orccyamhill-2016.