Monday, November 25, 2013

Central Delaware County Authority v. Greyhound Corp. case brief

Central Delaware County Authority v. Greyhound Corp. case brief summary
588 A.2d 485 (Pa. 1991)

Appellant county authority sought review from a decision of the Superior Court of Pennsylvania that affirmed the trial court's decision that the conveyance deeds' restrictions did not violate the rule against perpetuities, in appellant's action to quiet title on two parcels of land.

Appellant brought an action to quiet title in two parcels of land, alleging that the conveyance deeds' public use, ownership and repurchase restrictions were void as violative of the rule against perpetuities. The trial court found that the restrictions of the deed did not violate the rule and were not an unreasonable restraint upon alienation.


  • The superior court held that the restriction in the deed was an option to purchase, not an interest subject to a condition subsequent, and did violate the rule. 
  • The superior court determined that the restrictions were not invalid, however, on public policy grounds. 
  • The supreme court determined that the deeds were ambiguous, but concluded that the interest created was a repurchase option. 
  • The repurchase option was void, and the lower court was incorrect in determining that the rule against perpetuities did not apply to the repurchase option.

The judgment of the superior court was reversed, title was quieted in appellant county authority, and the option to repurchase, which constituted a cloud upon the title, was declared void and was removed.

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