Oglesby v. Lee
73 Fla. 39, 1917 Fla. LEXIS 400, 73 So. 840 (1917)
Rule of Law:
A grantor in a deed of gift may validly reserve the right to resell the property during their lifetime for the benefit of the grantee, and a subsequent sale exercised under this reservation extinguishes the grantee's title.
Facts:
- On September 10, 1897, David F. Gamble executed a deed conveying land to his daughter, Mary E. Gamble (later Mary E. Lee), as a gift.
- The deed contained a specific reservation clause allowing Gamble to retain possession for life and reserving the right to resell the land if he determined it was in Mary's best interest, provided he substituted the proceeds of the sale.
- The deed stated that aside from this reservation, the conveyance was in fee simple.
- On December 23, 1899, utilizing the right reserved in the 1897 deed, Gamble and his wife conveyed the same land to J.W. Oglesby.
- Oglesby subsequently conveyed the land to the West Coast Lumber Company, which then conveyed timber rights to the Interstate Lumber Company.
- David F. Gamble was appointed guardian of Mary, who was a minor at the time, to protect and manage the consideration received from the sale to Oglesby.
- Mary E. Lee eventually laid claim to the title based on the original 1897 deed, contending the subsequent sales were invalid.
Procedural Posture:
- Mary E. Lee filed a bill of complaint in the lower court to declare the conveyances to Oglesby and the lumber companies void and to quiet title.
- The defendants filed answers asserting that the 1897 deed contained a valid reservation allowing the resale of the land.
- The Chancellor (trial judge) heard testimony regarding the dispute.
- The Chancellor issued a decree in favor of Mary E. Lee, ruling against the defendants.
- The defendants (Oglesby and others) appealed the decree to the Supreme Court of Florida.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Is a reservation clause in a deed of gift that empowers the grantor to resell the land and substitute the proceeds valid, such that a subsequent sale by the grantor divests the grantee of their fee simple title?
Opinions:
Majority - Justice Whitfield
Yes, a reservation of the power to sell in a deed of gift is valid and enforceable. The court reasoned that the conveyance was explicitly a gift from father to daughter, and the instrument clearly contemplated and reserved the grantor's right to resell the property. Because the father exercised this right and conveyed the land to Oglesby exactly as provided for in the reservation clause of the original deed, the daughter's interest in the land was effectively terminated. Consequently, she holds no valid title to be clouded by the subsequent conveyances.
Analysis:
This decision reinforces the principle of freedom of alienation and the enforceability of conditional limitations in gratuitous transfers. The court prioritized the explicit intent of the donor (the father) over the technical grant of a 'fee simple' estate. By validating the reservation clause, the court established that a fee simple estate in a deed of gift can be made defeasible upon the exercise of a reserved power of appointment or sale. The ruling implies that when a grantee accepts a deed of gift, they accept all valid conditions and reservations contained within it, including those that might later divest them of the property entirely.
Unlock the full brief for Oglesby v. Lee