Village of Peoria Heights v. Keithley
299 Ill. 427, 132 N.E. 532 (1921)
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Rule of Law:
The right of re-entry for a condition broken, created by a conveyance of an estate on a condition subsequent, cannot be assigned or conveyed to a third party. This right can only be exercised by the original grantor or their heirs.
Facts:
- On January 4, 1904, G. W. H. Gilbert conveyed two lots by warranty deed to the village of Peoria Heights.
- The deed contained conditions that the village use the lots for public buildings and pass an ordinance prohibiting saloons in the surrounding addition.
- The deed specified that a breach of these conditions would cause the title to the lots to revert to the grantor, Gilbert, or his heirs.
- In February 1904, the village passed the required anti-saloon ordinance but never constructed any buildings on the lots.
- On December 20, 1910, Gilbert executed an unconditional warranty deed for the same lots to Arthur Keithley.
- On March 1, 1920, Gilbert executed a quit-claim deed to the village, conveying all his present and future interests in the lots, including any right of forfeiture.
Procedural Posture:
- The village of Peoria Heights filed a bill in the circuit court of Peoria county against Arthur Keithley, seeking to cancel Keithley's deed to the lots and remove it as a cloud on the village's title.
- Keithley, the defendant, answered and filed a cross-bill asking the court to quiet title in his name.
- The circuit court, a trial court, dismissed Keithley's cross-bill on demurrer.
- The circuit court entered a decree in favor of the village, finding that Keithley's deed was void and canceling it.
- Keithley, as the appellant, prosecuted an appeal from the circuit court's decree to the Supreme Court of Illinois.
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Issue:
Does a grantor's subsequent conveyance of land to a third party transfer the grantor's right to enforce a forfeiture for a breach of a condition subsequent contained in a prior conveyance of the same land?
Opinions:
Majority - Mr. Justice Thompson
No. A grantor's subsequent conveyance of land to a third party does not transfer the right to enforce a forfeiture for a breach of a condition subsequent. The original conveyance from Gilbert to the village created an estate on condition subsequent, leaving Gilbert with a right of re-entry. Under established property law, a right of re-entry for a condition broken can only be exercised by the grantor or their heirs. It is not an interest that can be assigned or conveyed to a third party before or after a breach. Therefore, Gilbert's 1910 deed to Keithley was void and conveyed no title or interest in the lots whatsoever.
Analysis:
This decision reaffirms the common law doctrine regarding the inalienability of a right of re-entry for a condition broken (also known as a power of termination). The court distinguishes this type of future interest from other, alienable interests like reversions or remainders. This ruling solidifies the principle that the power to enforce a forfeiture is personal to the grantor and their heirs, preventing third parties from purchasing these rights and speculating on potential breaches of conditions in real estate deeds. It maintains a stable and predictable framework for future interests in property law.
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