Strong v. Shatto

187 P. 159, 45 Cal. App. 29, 1919 Cal. App. LEXIS 325
California Court of Appeal·Decided December 15, 1919·No. Civ. No. 3045.·Published·Cited by 25 cases

Opinion

SLOANE, J.

This action was brought to quiet title as against certain conditions subsequent contained in a deed through which plaintiff’s title is deraigned.

Without setting forth the conditions in extenso, it is sufficient for the discussion of the issues presented on this ap *31 peal to state that they limit the use of the premises to residence purposes only, prescribe the nature, quality, and cost of buildings to be erected thereon, and provide that “as to the grantor herein, the breach of any of the foregoing conditions shall cause said premises together with the appurtenances to be forfeited to and to revert to the said grantor, his heirs, successors and assigns, each of whom shall have the right of immediate entry upon said premises in the event of any such breach.” Judgment was for plaintiff and defendant appeals.

The question presented in the trial court, and decided against, was whether or not the conditions subsequent, created in the deed of a grantor, upon the breach of which the grantor reserves to himself and his heirs the right of re-entry forever, are valid and enforceable against the grantee’s successors.

Respondent’s counsel concede, as we understand their argument, that the conditions and reservations are precisely such as have been upheld by the courts of this state in numerous decisions, notably in the cases of Firth v. Marovich, 160 Cal. 257, [Ann. Cas. 1912D, 1190, 116 Pac. 729], Quatman v. McCray, 128 Cal. 285, [60 Pac. 855 ]; Johnston v. City of Los Angeles, 176 Cal. 479, [168 Pac. 1047], and Southern Pacific R. R. Co. v. Blaisdell, 33 Cal. App. 239, [164 Pac. 804], These authorities establish the doctrine that such conditions of forfeiture are not against public policy or violative of the rule against restraints upon alienation. But respondent raises the point, which his counsel claim has never been presented or passed upon by the courts of this state, that such conditions and limitations are obnoxious to the rule against perpetuities; that is, as we understand the application of the doctrine, that there is an attempt here to create an estate the vesting of which depends upon what may be a very remote contingency, far beyond the limitations of the rule against perpetuities. If such is the case, and the question is a new one, the doctrine of stare decisis does not apply, and we are at liberty to consider the point on its merits. But, in view of the many decisions in this state, and in other jurisdictions of this country where forfeitures have been upheld under building restrictions of this character, there should be very convincing authority to *32 justify the disturbance of the established reliance upon such contracts throughout the business world.

Respondent rests his contention for this application of the rule against perpetuities upon the authority of certain comparatively recent English cases, which seem to hold that reservation of such restrictive limitations in deeds, or so-called building restrictions, is an attempt to create a contingent estate, which may vest in the grantor or his successors at an indefinite period beyond that permitted by the rule against perpetuities. (Dunn v. Flood, 25 Ch. Div. 629, 28 Ch. Div. 586; In re Hollis Hospital, [1899] 2 Ch. 540; In re Da Costa, [1912] 1 Ch. 337.) The English doctrine is recognized in Lewis on Perpetuities, sections 616, 617, and Gray on Rule Against Perpetuities, third edition, sections 299 to 305. The learned author of the latter work approves the application of the rule to the class of conditions involved here, as made by the English cases cited, but at the same time says: “The great concensus of authority, although without any consideration of the question involved, may perhaps be held to settle the law in the United States and to create in this country an exception, arbitrary though it be, to the rule against perpetuities. ’ ’ j

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Strong v. Shatto, 187 P. 159, 45 Cal. App. 29, 1919 Cal. App. LEXIS 325 (Cal. Ct. App. 1919).

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