City Of Palm Springs v. Living Desert Reserve

82 Cal.Rptr. 2d 859, review denied (1999)

Facts

Palm Springs built a golf course on donated property that it was supposed to use on the express condition that it become a desert wildlife preserve. The Bank of America acting as trustee and under the will of Pearl McManus executed a deed conveying the land to the City with an express condition to use the land as a wildlife preserve. The City expressly accepted the grant in 1986 and three years later despite the conditions of the grant decided to build a golf course on the land. The City then asked the Trustee if they could build the course and then purchase other land to use as a preserve. Those offers were declined. After which the City adopted a resolution of necessity under public health, safety, and welfare and used its power of eminent domain. The City also applied for an order of immediate possession of the reversionary interest and the trial court granted the application with an appraisal value of $200,000. Living Desert filed a notice of breach of condition subsequent and then cross-complaint against City to quiet title to the land. The trial court eventually ruled that the reversionary interest was not a compensable interest and hence no payment was due to Living Desert; the City got judgment. Living Desert appealed.