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Oregon Court of Appeals - 7 Or. App. 330, 490 P.2d 515
The case concerns a corporation that gifted land to the city for use as a library, with the condition that it be used for that purpose. When the library closed, the question arose as to whether the land title remained with the city or passed to the descendants of the corporation's shareholders. The trial court found that the title vested in the city, as the gift over to the shareholders was void under the rule against perpetuities. The estate that passed to the city was a fee simple on a special limitation, which automatically ends when a designated event occurs. The gift over to the heirs and assigns in the deed was an attempt to grant an executory interest, but this interest was subject to the rule against perpetuities. The rule requires that an interest must vest within 21 years after the creation of the interest. When an executory interest following a fee simple interest in land is void under the rule against perpetuities, the prior interest becomes absolute unless the creating instrument clearly states that the prior interest is to terminate regardless of whether the executory interest takes effect.
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