Saturday, April 21, 2007

Louisville Sues Over Church's Right To Land; Issue Is Rule Against Perpetuities

Over 80 years ago, the family of S. Thruston Ballard donated two parcels of land (about 2 acres) to the city of Louisville, Kentucky for use as a park, playground or for recreation. The conveyance provided that if the land ceased to be used for these purposes, it would revert to the Episcopal Diocese of Kentucky. Now the city has agreed to convey the land-- located along the Ohio River-- to developers who are building a $200 million residential and office project. The Diocese says that this agreement means that the land now belongs to the Diocese. After negotiations between the city and the Diocese broke down, the city filed a quiet title action, asking the court to declare that it has clear title to the land. The city claims that the Diocese's revisionary rights lapse long ago, and that the law does not permit the rights to continue indefinitely. Attorneys for the Diocese disagree. Apparently the dispute is over the interpretation of Kentucky's Rule Against Perpetuities. The Louisville Courier-Journal reported on the case on Thursday.